Drilling activity in the Permian Basin is not as robust as it was before the Covid-19 pandemic upended the oil and natural gas industry, but new and existing pipeline projects have midstream companies ready to capture any incremental growth.

Plains All American Pipeline LP management said as commodity price signals increased, exploration and production (E&P) activity in the Permian ramped early in the year. However, growth from the basin has stabilized as public E&Ps remain “very disciplined” when it comes to spending, according to Chief Commercial Officer (CCO) Jeremy Goebel.

The executive told investors during the second quarter 2021 earnings call that there are a half-dozen or so private E&Ps that were taking advantage of the opportunity where there’s discipline across...