What’s the issue?
Last week, Cactus II filed a petition with FERC requesting approval of the terms of a proposed open season to market capacity on its pipeline that is being made available through the restructuring of its original anchor shipper contract.
Why does it matter?
As explained by Cactus II, over the last year, the COVID-19 pandemic has caused a reduction in production forecasts by approximately 2,000,000 barrels per day (BPD), while at the same time Permian Basin pipeline takeaway capacity has increased from 4,000,000 BPD to 8,000,000 BPD.
What’s our view?
This tremendous change will continue to impact other pipelines serving the Permian Basin as well as the transportation rates being offered as incentive rates across the entire crude pipeline marketplace. Arbo’s new liquids commerce platform allows our customers to quickly assess shifting market dynamics related to liquids transportation rates across the U.S. and Canada.
Inquire about a trial of ArView insights to read the full article.