Did you know that production of oil in the Permian is actually increasing by 800,000 barrel per day (BPD) each year? Production has averaged 3.3 million BPD lately. The pipeline capacity is 3.6 million BPD and in just a few months, we’re expected to exceed that in production. Then what?

Until infrastructure is built to keep up with production, some wells will shut down. If the pipeline capacity isn’t there, they have to cut back on production. Some drillers have planned ahead and reserved pipeline space, but it’s still frustrating for many producers. So, pipeline construction is in the works.

Pipeline Additions

Plains All American Pipelines expects the expansions for its Sunrise and Cactus II to be in service next year.  That company is also working with super-major ExxonMobil on a large-scale oil pipeline project. That project should ship in excess of 1 million BPD out of the area. That project is expected to be in service by 2021.

Plus, Gray Oak Pipeline from Phillips 66 and Canadian Enbridge should be online next year too. That would carry over 3 million barrels per day from West Texas to near Corpus Christi and Houston.

Additionally, Kinder Morgan teamed up with Apache Corp and a Blackstone subsidiary to construct a natural gas pipeline, which we discussed yesterday.

Are You Buying a Home in Midland?

The Underwood Group is a team of top real estate professionals in Midland. We know Midland real estate, so if you’re thinking about buying with this kind of market, you’ll absolutely need our expertise. Call our team of Midland real estate agents at 432-698-0411 today.

If you’re looking for a new home, search by school district or search Midland real estate listings by price:

• Midland homes for sale between $150,000 and $200,000
• Midland homes for sale between $200,000 and $225,000
• Midland homes for sale between $225,000 and $300,000
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• Midland homes for sale between $400,000 and $500,000
• Midland homes for sale between $500,000 and $750,000
• Midland homes for sale between $750,000 and $1 million
• Midland homes for sale over $1 million

Hoping To Sell A Home In Midland?

It won’t be hard to sell your Midland home, but when you choose to list your house with us, our experience can help ensure that you get the highest return on your investment! Plus, Midland 1st Choice Real Estate offers a Free Market Analysis to clients. This free analysis provides our clients with the best comparative value by looking at similarly featured home recently listed and sold.

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