23 Apr Demand Rebound Excludes Some Oil Players in Permian Basin
In this week’s Rigzone market commentary, Validere’s Mark Le Dain sat down with Matthew V. Veazey at Rigzone to discuss the oil demand in the Permian Basin alongside energy advisor Phil Kangas. Keep reading for more details.
When discussing market expectations that occurred this week, Phil Kangas mentioned how the vaccination rollout has increased travel and economic activity. An example is jet fuel which is expected to reach a 21% recovery in 2021.
Yet, oil pipelines are operating below capacity in the Permian Basin. Many built in the past two years are sitting underutilized. This additional capacity is forcing operators to find alternative uses for pipeline assets ultimately, impacting their bottom lines.
This week, the American and Canadian governments pledged to reduce emissions by 50% against historical data. When it came to market surprises, Validere’s Mark Le Dain shared the shocking number of energy executives, particularly large caps, supporting the increased climate action. To read more of this week’s review, click here.