As oil prices continue to fall, six major pipeline operators have slashed $1.9 billion from their 2020 budgets over the past couple weeks, reported Beaumont Enterprise.
The operators include Pembina Pipeline, Noble Midstream Partners, Rattler Midstream, Targa Resources, EnLink Midstream and Oneok. The budget cuts represent an overall 30 percent cut in planned expenditures, with Pembina making the largest cut of $700 million from a budget of almost $1.6 billion.
Oil prices took their biggest fall since 1991 as the result of a price war between Saudi Arabia and Russia, reports CNN. Meanwhile the novel coronavirus disease COVID-19 has caused a near-global shelter-in-place, restricting travel and, with it, demand for fuel.
As of March 20, forecasters have predicted demand growth will shrink in the range of 90,000 to 155,000 barrels per day, according to CNN.
Earlier this month, CNN Business reported that Morgan Stanley estimated if oil prices remaine
