U.S. oil output hit a record 13.8 M bpd in August 2025, led by Gulf and Alaska gains. Producers highlight efficiency gains keeping production steady into 2026. In the Bakken, Enable’s new tariff targets a new customer, possibly Continental amid Hiland disputes.
XTO's position as anchor customer on Enable's Nesson system at $1.3155 per barrel demonstrates Exxon's operational focus on locking in favorable long term midstream economics. The fact that Exxon divested Bakken acreage to Chord while maintaining its core gathering commitments shows strategic capital reallocation toward higher return projects like the Permian and Guyana. Continental's potential switch from Hiland to Enable could signal broader midstream competitiveness pressures in the basin, especially as producers seek rate stability amid the efficiency-driven producton environment you outlined. The irony is that even as operators slow activity and optimize rather than grow aggressively, these gathering systems still need to compete hard for committments from remaining high volume shippers like XTO.
XTO's position as anchor customer on Enable's Nesson system at $1.3155 per barrel demonstrates Exxon's operational focus on locking in favorable long term midstream economics. The fact that Exxon divested Bakken acreage to Chord while maintaining its core gathering commitments shows strategic capital reallocation toward higher return projects like the Permian and Guyana. Continental's potential switch from Hiland to Enable could signal broader midstream competitiveness pressures in the basin, especially as producers seek rate stability amid the efficiency-driven producton environment you outlined. The irony is that even as operators slow activity and optimize rather than grow aggressively, these gathering systems still need to compete hard for committments from remaining high volume shippers like XTO.