Pipeline Operator Enterprise It's Says Bullish on Permian Oil Output
(Reuters) — U.S. energy pipeline operator Enterprise Products Partners was bullish on oil production from the top U.S. shale basin, the firm said on Wednesday, predicting that international demand for U.S. oil and gas will rise.
The comments come as top oil producers have warned of easing crude oil production from the Permian basin, spread across Texas and New Mexico, and as Enterprise's oil pipeline volumes fell last quarter. Rising costs, dwindling reserves and pressures to hold down spending have slowed Permian output gains.
"We think a lot of crude oil has to come from this country to satisfy demand," said Chief Commercial Officer Brent Secrest.
Enterprise, which is looking to build a crude oil export terminal, said the market still needs the project as pipelines to top oil export port Corpus Christi are nearly full.
The pipeline operator posted a better-than-expected profit earlier in the day as its pipelines transported more natural gas. Export demand for natural gas has risen since the Ukraine crisis, providing ample opportunity for pipeline operators to move volumes to the coast.
Natural gas transportation volumes rose 20.5% to a record 17.6 trillion British thermal units per day (TBtupd), boosting operating margin in the segment by about 62%, Enterprise said.
However, its crude oil pipeline volumes dipped 2% to about 2.28 million barrels per day (bbl/d). Crude marine terminal volumes increased 16% to 756 million bbl/d.
The company also said it was targeting earnings above $9.3 billion for the full year.
Related News
Related News

- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- 208-Mile Mississippi-to-Alabama Gas Pipeline Moves Into FERC Review
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- Kinder Morgan Gas Volumes Climb as Power, LNG Demand Boost Pipeline Business
Comments