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Understanding the Impact of Undrilled Inventory on PAA over the Long Term

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Undrilled inventory

According to Plains All American Pipeline (PAA), a significant amount of undrilled inventory in North America should benefit it in the long term. The company believes that rising crude oil production will “raise capacity utilization on existing infrastructure and improve unit margins.”

The above table shows undrilled inventory in selected resource plays. The company, however, believes that a competitive environment could continue to impact it in the near term.

In the next and final part of this series, we’ll discuss what Wall Street analysts recommend for Plains All American.

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