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Exxon-Pioneer tie up could squeeze US shale oil suppliers, pipelines
Top U.S. oil producer Exxon Mobil's XOM.Nplanned acquisition of the No. 1 Permian shale producer Pioneer Natural Resources PXD.N could further restrain output growth in the largest U.S. oilfield, squeezing pipeline companies and suppliers, executives and energy advisors said. Consolidation, steep cost inflation and investor demands for returns have shrunk production growth this year in the Permian shale formation in West Texas and eastern New Mexico. Permian crude production is forecast to rise this year by about 430,000 barrels per day (bpd), well below the 1 million-bpd gain in 2019, according to government data. ... (full story)