Oil and Natural Gas Producers Say Texas Has a Pipeline Problem

Demand for oil and natural gas is rising as officials in the Lone Star State gear up for winter. However, a lack of pipelines is making life difficult for energy producers. Natural gas prices in the Permian Basin plunged in October, as booming production overwhelmed the pipeline network.

“We have a lot of energy in West Texas. The problem is we can’t get the pipelines built fast enough to get all that energy out of Permian to where it’s need,” David Holt, president of the Consumer Energy Alliance, said.

He adds that pipeline constraints have been a problem for a long time. However, recent price volatility comes at the same time the country’s allies in Europe are grappling with a lack of supply. He hopes the federal government will step up and do more to build out the network.

“This isn’t just a problem in Texas,” Holt explained. “This is a problem everywhere. We don’t have enough pipelines. We don’t have enough infrastructure. So, all these things need to be taken more seriously.”

MIDLAND, TEXAS - MARCH 13: Pipes and valves are part of a petroleum pipeline running along the ground in the Permian Basin oil field on March 13, 2022 in Midland, Texas. The Permian Basin is the largest petroleum-producing basin in the United States. (Photo by Joe Raedle/Getty Images)


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