October 11, 2018 / 12:34 AM / 10 days ago

Pipeline constraints a check on Permian basin oil producers - Moody's

A lack of pipeline capacity could hamper the ability of small energy producers to capitalize on the surge in shale oil and natural gas output from the Permian Basin in west Texas and eastern New Mexico, according to a report issued on Wednesday by Moody’s.

The credit rating agency said the capacity shortage could limit exploration and production in the biggest domestic shale oil formation at least until midstream operators build more pipelines.

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