Moody's: Permian Basin pipeline constraints will limit oil and gas production next year

Moody's Investors Service said in a recent report that the lack of pipelines to transport oil and gas from the Permian Basin in western Texas and southeastern New Mexico until new pipeline capacity comes online by the end of 2019 will limit exploration and production activity and drive down realized prices
.
The surge in Permian development over the past two years has constrained labor resources, proppant supply, infrastructure, and pipeline capacity
for oil, gas liquids, and natural gas.

According to this latest report from Moody's Investors Service, pipeline capacity to transport oil and gas to markets outside the Permian Basin is likely to be severely inadequate
for the region's strong growth in oil and gas production for much of 2019.
In the second half of 2019, the new pipeline is likely to be commissioned at a different time to ease the bottleneck of oil and gas transmission, but until then, pipeline capacity constraints are likely to limit producers' oil and gas exploration and production activities
.