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Growing pains across America's biggest oilfield
Growing pains across America's biggest oilfield
by Matt Egan @MattEganCNN
June 28, 2018: 7:40 AM ET
The Permian Basin, arguably the most important oilfield in the world, is growing so fast that it hurts. ... A rush to pump oil out of the West Texas shale field has vaulted the United States to record-high production levels.
But the gangbusters growth has created serious challenges. The Permian Basin is rapidly running out of pipeline to carry all that crude. Companies are struggling to find talented workers. And the region's infrastructure is buckling under the pressure.
"Right now, everything's an issue: Water, sand, buildings, transportation. You name it," Ryan Sitton, a commissioner on the Texas Railroad Commission, told CNNMoney in a recent interview. ... The Lone Star State is no stranger to the boom-to-bust nature of the oil industry. But the speed of this cycle has even caught many in Texas off-guard.
"In 2014, it was amazing. 2016 was down in the dumps. Two years later, it's back to crazy," said Sitton. ... The Permian Basin's growing pains have global implications. ... US oil prices have nearly tripled since their early 2016 low, in large part because of production cutbacks by OPEC and Russia. Sanctions on Iran are also biting, with crude hitting a three-and-a-half year high this week.
by Matt Egan @MattEganCNN
June 28, 2018: 7:40 AM ET
The Permian Basin, arguably the most important oilfield in the world, is growing so fast that it hurts. ... A rush to pump oil out of the West Texas shale field has vaulted the United States to record-high production levels.
But the gangbusters growth has created serious challenges. The Permian Basin is rapidly running out of pipeline to carry all that crude. Companies are struggling to find talented workers. And the region's infrastructure is buckling under the pressure.
"Right now, everything's an issue: Water, sand, buildings, transportation. You name it," Ryan Sitton, a commissioner on the Texas Railroad Commission, told CNNMoney in a recent interview. ... The Lone Star State is no stranger to the boom-to-bust nature of the oil industry. But the speed of this cycle has even caught many in Texas off-guard.
"In 2014, it was amazing. 2016 was down in the dumps. Two years later, it's back to crazy," said Sitton. ... The Permian Basin's growing pains have global implications. ... US oil prices have nearly tripled since their early 2016 low, in large part because of production cutbacks by OPEC and Russia. Sanctions on Iran are also biting, with crude hitting a three-and-a-half year high this week.
