- June 18, 2019
- Energy
The US is experiencing a boom in crude oil production and natural gas output. It is estimated that there has been a 140 percent increase in oil production, pointing towards a growing market and increased profits for investors. While the oil production is consistently increasing, the pipeline network in the country is operating at near-saturation levels. The early activation of Project Sunrise, however, has come off as a relief to oil producers in the Permian Basin as it provides a much necessary boost in transportation. Continue reading to find out more about the impact of Project Sunrise on oil and gas investments in the Permian basin, Texas. For high networth individuals on the lookout for oil and gas investment opportunities in Texas, Fig Tree Capital Ventures, a reputable oil and gas company is here to help.
The Need for Project Sunrise
Oil is generally transported through four means of transportation–pipelines, railways, trucks and ships. Pipelines are the most desirable and safest modes of transportation for sending oil across the country, however, the US has been facing a bottleneck level of activity in pipelines across several prime crude oil basins. For instance, the Permian basin in Texas was one such centre in the US experiencing such bottleneck level activity and direly needed increased pipeline network for faster production and output of oil. The Project Sunrise by Plains All American aimed to increase the outbound capacity and was building pipelines that originated in Midland, TX passed through Colorado City and terminated in Wichita Falls TX. In late 2018, it was reported that the pipeline came online ahead of schedule, coming off as a much needed relief to several oil producers in the Permian basin.
Effects of Project Sunrise on Oil Production
The 500,000 bpd Sunrise Expansion pipeline helped in enabling new outlets for the Permian crude and also enabled other long haul pipelines such as the 550,000 bpd Basin pipeline in expanding and reaching its full utilisation. Prior to the activation of Sunrise, the Permian basin experienced an output of 400,000 bpd in September, 2018. After the activation, the output shot to 530,000 bpd by November 2018, an increase of output by nearly 100,000 bpd. Apart from an increased production, we could also see more activity at storage hubs such as the Wichita Falls storage hug, which stands as the terminus point for the Sunrise pipelines. After Sunrise project was activated, the storage and feeder pipelines sprang to life, indicating an increased activity and oil production in the Permian basin.
Wrap Up
The Project Sunshine is creating a ripple effect of increased activity, output and efficiency in the overall oil production and transportation in the US. The activation of this project ensures that the oil producers in Texas will experience greater profits and several high networth individuals looking to invest in oil and gas are now making a quick move to double down on their profits. Investing in oil and gas comes with several advantages such as promising returns on your investment, portfolio diversification and tax advantages. If you’re a high net worth investor looking for energy investment opportunities in Texas, look no further than Fig Tree Capital Ventures. To know more about potential energy investment programs in Texas, fill out our contact form or simply call +1-866-304-9194.
