Permian Takeaway Project Spike, Don’t Miss It!
The U.S. oil industry midstream segment involves the moving, storing, and import/export of crude oil. Each segment represents opportunities for process automation product and service sales.
The elimination of crude oil export restrictions and a significant reduction in E&P costs, are making new U.S. field development profitable at the lower crude oil prices.
Demand for crude oil and NGLs takeaway is prompting the consideration of several new pipeline, storage, and export expansion projects.
The largest portion of the spending is expected to involve moving crude oil and NGLs from the Permian basin in Texas and New Mexico to the Gulf Coast refineries and oil export marine terminals.
We’ve identified 20 pipeline projects, 11 storage new/expansion projects, and 6 petroleum export marine terminal expansions that are at various development stages from “thinking about it” to under construction.
Based on our analysis, the cumulative 5-year capital investment, if all the projects are completed, would range from 35 to 40 billion dollars.
Process Automation spending associated with the Permian basin expansion projects described in our white paper could range from 250 to 300 million dollars.
We expect the market to see a two or three-year surge in demand then falling off significantly in the later 2 years of the forecast period.
Read our White Paper to learn more about the Permian Basin Takeaway expansion and the near-term Process Instrumentation & Automation potential to be exploited.