Roads, Not Pipelines, May Be Biggest Threat to Growth in Oil Hotspot

Kevin Crowley | Bloomberg News   |   September 18, 2018

For an oilman who’s worked on the Gulf Coast, near the Russian Arctic and in Royal Dutch Shell Plc’s headquarters in The Hague, being stuck in traffic on a dusty West Texas highway is not the stuff of dreams.

The GMC Yukon rented by Amir Gerges, general manager of Shell’s operations in the Permian Basin, has crawled just four miles in the past hour. “That’s probably a truck that rolled over that’s causing this,” Gerges said, speaking from weary experience.

Turns out, it’s just routine work on Highway 302, an 83-mile-long, often single-lane road that runs from Odessa, Texas, home to a variety of oilfield servicers, to Loving County, in the western part of the Permian. It’s a stretch that saw traffic jump by 76 percent in 2017, and it’s continued to rise this year.

Read the story at: https://www.bloomberg.com/news/articles/2018-09-18/roads-not-pipelines-seen-as-biggest-permian-peril-to-growth

< Go Back