Production of natural gas in the Permian Basin averaged 22.2 Bcf/d over the week ending September 8, up 0.1 Bcf/d from the week prior. Production in August averaged 21.9 Bcf/d, up 0.4 Bcf/d month-on-month and about 1 Bcf/d higher than production levels in the spring. August production was also 1 Bcf/d higher than during the same month last year, as seen in the chart below.
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- Analyst Insight
Permian Gas Production Sets Monthly Record
Permian gas production hit a new record in July, but outright prices remained positive. This may change, however, with maintenance on the horizon.
- Blog
Don't Dream It's Over - Negative Permian Gas Prices, But Is the Worst Yet to Come?
Permian natural gas prices are having a rough spring. After a volatile winter that saw two periods of negative-priced trades followed by a period of relatively strong prices, values at the Permian’s major trading hubs hit the skids earlier this week just as Spring Break set in for most in the Lone Star state. Once again, pipeline maintenance and burgeoning production appear to be the main culprits, but this upheaval feels different, in our view. Clearly, the price crash has reached a new level of drama, with day-ahead spot prices at West Texas’s Waha hub now settling below zero — some days by more than $0.50/MMBtu. Gas production has raced higher too, now within striking distance of 10 Bcf/d, on the coattails of continued oil pipeline capacity expansions, but new gas pipeline takeaway capacity is an estimated six months away. What becomes of Permian gas prices in the meantime, and how much worse could already-negative prices get? Today, we discuss the drivers behind the latest price deterioration and assess what’s ahead for the Permian natural gas markets.
- Analyst Insight
Waha Gas Prices Back to Positive as Mexico Exports Remain High
Exports to Mexico have been near their maximum achieved levels recently, as Waha gas prices recover despite Westbound outages on El Paso.
