Page 10 - NorthAmOil Week 07 2023

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

The pipeline company
is seeing higher use
for long-haul systems
including its Cactus I
and Cactus II pipelines
in the Permian.

Plains predicts 2023 Permian output

growing by 500,000 bpd

PERMIAN BASIN PLAINS All American Pipeline expects total Corpus Christi on the Texas Gulf Coast.
crude oil production in the Permian Basin to rise Plains reported quarterly revenues of
by up to 500,000 barrels per day (bpd) in 2023, $12.95bn for the fourth quarter of 2022 versus
according to officials on an earnings call for the $12.99bn for the same period a year earlier. It had
fourth quarter of 2022. fourth-quarter and full-year 2022 net income of
Horizontal rig counts will remain sim- $263mn and $1.04bn respectively, and 2022 net
ilar in the basin in 2023, said the midstream cash provided by operating activities of $335mn The company
company. and $2.41bn respectively.
“Looking to 2023, our Permian Basin assets The company reported better-than-expected reported better-
are well positioned to benefit from continued fourth-quarter and full-year 2022 adjusted earn-
production growth,” said Plains GP Hold- ings of $659mn and $2.51bn respectively. than-expected
ings’ chairman and CEO, Willie Chiang, in a For 2023, it expects full-year 2023 adjusted
statement. earnings attributable to Plains of $2.45-2.55bn. fourth-quarter
Plains’ master limited partnership (MLP) The Permian, the US’ most prolific oil-pro- and full-year
handles on average more than 7mn bpd of crude ducing region, straddles West Texas and New
oil and natural gas liquids (NGLs) in the US and Mexico. The US Energy Information Adminis- 2022 adjusted
Canada. tration (EIA) expects oil production in the basin
The pipeline company is seeing higher use to reach 5.65mn bpd in February 2023 and 5.68 earnings.
for long-haul systems including its Cactus I and mn in March 2023. The rate of increase has been
Cactus II pipelines in the Permian. slowing, while production per-well and reserves
The 310-mile (499-km) Cactus I pipeline, have been dwindling.
with a diameter of 20 inches (501 mm), deliv- In its recent earnings call, ExxonMobil fore-
ers sweet and sour crude from the Permian to cast that its output from the Permian would
the Eagle Ford JV pipeline system, which Plains grow by 50,000 barrels of oil equivalent per day
co-owns. That system has a capacity of 390,000 (boepd) in 2023 to more than 600,000 boepd.
bpd. Despite slower growth overall in the basin, pros-
The Cactus II pipeline is a 26-inch (660- pects look good for some years to come. Exxon-
mm) diameter, 670,000 bpd pipeline extend- Mobil has a goal of producing 1mn boepd from
ing from the Permian’s Delaware sub-basin to the Permian by December 2027.™

P10 www. NEWSBASE .com Week 07 16•February•2023