Plains All American Pipeline LP said a rebound in oil demand and a corresponding jump in Permian Basin crude production bolstered its fourth quarter and full-year 2021 earnings, and the company expects continued momentum in the prolific region through this year and beyond.

Permian Basin Prices

The Houston-based company’s management team told analysts that the Permian, where Plains is focused, closed out 2021 producing roughly 5 million b/d, with crude output up about 540,000 b/d over year-end 2020. Plains expects the basin to add about 600,000 b/d annually for the next several years.

CEO Willie Chiang noted during the fourth quarter earnings conference call earlier this month that crude demand had nearly returned to pre-pandemic levels by the end of 2021 – after a bruising 2020 – and that both...