By Georgina McCartney
Are you ready to take advantage of the latest game-changing pipeline investment opportunity in the U.S.? A new pipeline in west Texas is set to revolutionize the energy industry, easing constraints and paving the way for higher oil production, according to energy executives.
The 580-mile Matterhorn Express pipeline, a joint venture between WhiteWater Midstream, EnLink Midstream, Devon Energy, and MPLX, is making waves as the first new natural-gas pipeline built in the Permian basin in three years. With the capacity to carry up to 2.5 billion cubic feet of gas per day, this pipeline is set to add 14% in new regional capacity, propelling the Permian basin, a major shale-gas producing region, to new heights.
Since Matterhorn began operations last month, producers in west Texas have seen a significant increase in gas prices, with prices at the Waha hub reaching their highest level since mid-June. The pipeline has not only freed up space but also allowed producers to increase profits by fetching higher prices for their gas, leading to a boost in crude production growth.
Analysts predict that Matterhorn will unlock higher Permian oil output, with estimates showing a substantial increase in oil production growth next year. Without this new pipeline capacity, much of the projected oil production growth in the Permian basin would not be feasible, highlighting the crucial role that Matterhorn plays in driving the energy sector forward.
However, this short-term relief may be temporary, as market participants anticipate that Matterhorn will be filled to capacity next year, leading to pipeline constraints once again. To address this issue, the Blackcomb gas pipeline is in the works, set to move another 2.5 billion cubic feet of natural gas from the Permian to south Texas starting in the second half of 2026.
As you navigate through the complex world of investments and financial markets, understanding the impact of key developments like the Matterhorn Express pipeline is essential for making informed decisions. Stay ahead of the curve and seize the opportunity to capitalize on this groundbreaking investment opportunity that is reshaping the U.S. oil production landscape.