Trump's Steel Tariffs May Worsen Permian Pipeline Crunch

Law360 (June 6, 2018, 7:23 PM EDT) -- President Donald Trump's decision to move ahead with sweeping steel tariffs could further tighten the current pipeline logjam in the oil-rich Permian Basin of West Texas, making it tougher for producers to get their oil and gas out of the ground and into the market, experts say.

The Permian is the epicenter of U.S. crude oil production, pumping out nearly 3.3 million barrels a day, according to the latest figures from the U.S. Energy Information Administration. But that production is outpacing the capacity of existing pipeline infrastructure in the region, creating transportation bottlenecks that make Permian oil worth increasingly less compared...

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