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Bigger Oil Pipelines Coming to West Texas, Very Soon

Epic Midstream Holdings LP said last year it would build its first oil pipeline in America’s most active oil field. It won’t be finished until next year, but already Epic Midstream is considering making it bigger.

The upstart company, backed by private equity, had been planning to build a conduit capable of carrying 440,000 barrels a day from West Texas to Corpus Christi on the Gulf Coast. Now, it’s considering enlarging it to 675,000 barrels a day, after interest picked up in recent months.

“We’re taking a look at upsizing very cautiously,” said Epic Midstream Chief Executive Phil Mezey. It plans to make a decision in coming weeks.

Bottlenecks have become a problem in the Permian Basin of Texas and New Mexico at the center of the shale boom. Drillers are pumping so much oil and gas that pipelines considered more than adequate just a few years ago now are overwhelmed. [Read More]

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