I have a question...
One of my friends was telling me that the pipelines are ‘full’ leading out of the Permian basin. Full to the point that some operators can’t sell their product because it can’t get to the purchasers.
What do you know about that?
Many of the pipelines are running at capacity, but that won't keep anyone from selling the product as demand still exceeds production. But they might have to resort to rail, costing more, to bring it to market. But once they go rail, they can serve markets that are under-served by pipeline and pay more, like the East Coast.
Trains keep rolling from Permian Basin
http://fuelfix.com/blog/2014/07/03/trains-keep-rolling-from-permian-basin/
July 3, 2014
More pipeline capacity is already in the works.
BridgeTex Pipeline Announces Open Season for Additional Pipeline Commitments
http://online.wsj.com/article/PR-CO-20140709-906454.html