Lack of pipeline space in the Permian Basin has caused explorers most focused in that basin to lose more than $1 billion a day over the last two weeks.
Eight of the Permian’s pure-play drillers lost $15.6 billion in combined market value in just over two weeks as transportation constraints are eating the profit they could be receiving for a barrel of crude oil, according to Fuel Fix reporting.
Production has been soaring in the Permian, but transportation infrastructure like pipelines, trucks, and rail have not been able to keep up with the demand, which is hurting explorers.
Some of the explorers most tied to the Permian include Parsley Energy, Concho Resources, Cimarex Energy, Pioneer Natural Resources, and more.
Pipeline relief may not be available until 2020, which is when new pipeline projects are expected to be up and running.