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Old 07-09-2018 | 05:59 AM
  #9570  
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Big E 757
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Originally Posted by ERflyer
At the moment there is a bottleneck in distribution for oil coming from fracking regions. For example, there are not enough pipelines coming from the Permian Basin in Texas to take all that is or could be produced.

Also, the US said they would impose sanctions on anyone taking Iranian oil. That’s about 5M barrels a day.

America's biggest oilfield is running out of pipeline

Plus there has been underinvestment in production oveall.

https://www.bloomberg.com/news/artic...sh-over-growth
Those are valid points. I just think though, that the underinvestment was caused by the low price of oil. The juice wasn’t worth the squeeze, so to speak. Now that prices are trending higher, I’d bet the various companies will start spending money to find new oil sites and updating equipment. It’ll take time to become the shock absorber again though after all these years where capital investment has been lagging.
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