The West Texas oil boom is still, well... Booming!
But with this increase in production comes the problem of getting the fruits of the drilling labor to refineries as fast as possible.
But soon, this will no longer be a lingering problem for West Texas.
The lack of pipeline has been creating a good bit of controversy for producers who are hell bent on moving their record amounts of crude oil from the Permian Basin of West Texas to their markets as fast as they are pumping it out of the ground.
Plains All American Pipeline L.P. and Exxon Mobil announced Wednesday that they have finally solidified their joint venture to build a 650 mile pipeline from West Texas to Houston refineries.
The pipeline is projected to be 36 inches in diameter and expected to carry more than 1 million barrels of oil PER DAY!
And, to be expected, this pipeline creation comes with a hefty price tag. $2 Billion to be exact!
Pre-construction activities have already begun, providing more than 3,100 jobs, and the final product is expected to be servicing West Texas drilling and production by the first half of 2021.
Aside from its 2019 Oil endeavors, ExxonMobil planning to triple its presence in the Permian Basin by 2025, it is also planning to aggressively expand along the Gulf Coast with investing more than $20 Billion over the next decade for oil based projects in Texas and Louisiana.