The Permian Basin is evolving. Long known as America’s oil powerhouse, the region is now producing more natural gas than ever, with gas output rising faster than crude. Yet oil remains the anchor, drawing steady investment into pipelines, storage, and export facilities. This dual trend—surging gas volumes alongside strategic oil infrastructure buildouts—is reshaping the basin’s role in U.S. and global energy markets.
Gas Growth Outpaces Oil
Over the last five years, oil output in the Permian has grown steadily, but natural gas has grown even faster. Associated gas from oil wells has pushed total gas production from less than 14 Bcf/d in 2019 to more than 28 Bcf/d in 2025. With many of the best oil-rich drilling spots already tapped, new wells are yielding higher gas-to-oil ratios, making the basin “gassier” each year.
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Midstream Builds Out Capacity
This surge in natural gas is fueling a wave of midstream development. Companies are investing in new processing plants and long-haul pipelines to move molecules to market:
- Energy Transfer is developing the Desert Southwest Pipeline to deliver 1.5 Bcf/d from the Permian to Phoenix.
- Tallgrass Energy has proposed a connection to the Rockies Express System.
- A consortium of ONEOK, WhiteWater, MPLX, and Enbridge is building the Eiger Express Pipeline, a 2.5 Bcf/d system to the Gulf Coast.
- Projects like the Hugh Brinson, Blackcomb, and Gulf Coast Express expansion are set to add several more Bcf/d of takeaway by 2026.
Consolidation Continues
Alongside new construction, M&A remains a constant in the basin. Midstream operators are acquiring gathering systems, processing assets, and water infrastructure to strengthen their footprints. These bolt-on deals allow companies to capture more volumes and better serve producers in a basin where gas is becoming increasingly central.
One of the most notable recent moves is Plains All American’s $1.57 billion acquisition of a 55% stake in EPIC Crude Holdings. The EPIC system is a critical crude corridor linking the Permian and Eagle Ford to Corpus Christi, featuring a 600 Mb/d pipeline, 7 million barrels of storage, and a marine terminal with 200 Mb/d of export capacity. With this deal, Plains now owns or controls three of the four major Permian-to-Corpus pipelines—leaving only Gray Oak outside its portfolio.
The transaction enhances Plains’ wellhead-to-water strategy, tying its Oryx and Ironwood gathering systems more tightly into EPIC, alongside existing assets like Cactus I, Cactus II, and its Eagle Ford JV with Enterprise Products Partners. Just as importantly, the acquisition secures export flexibility at Corpus Christi, where EPIC’s terminal complements Plains’ Eagle Ford JV facility. Together, these assets provide redundancy, optionality, and room for expansion at the premier U.S. crude export hub.
By sharpening its focus on crude logistics and divesting non-core assets like its Canadian NGL business, Plains is signaling a clear strategy: build an integrated crude network from the Permian wellhead to global markets.
🌐 Bottom Line:
The Permian Basin is no longer just about oil. With natural gas production growing faster than crude and midstream players consolidating key corridors, the region’s future will be defined by infrastructure, integration, and the race to connect the basin’s output to demand centers at home and abroad.
