Permian production averaged 22.2 Bcf/d for the week ended April 6, up 0.4 Bcf/d from the week prior. This is the highest weekly gas production figure that has ever been seen in the Permian Basin. The higher production levels were largely a result of higher receipts on El Paso Pipeline. Production receipts on the pipeline have been variable because of ongoing maintenance work but are currently very strong, about 0.5 Bcf/d over the same time last year. However production upside remains limited in the near-term because of constrained infrastructure. In the back half of the year, once infrastructure is available, RBN expects over 1.5 Bcf/d of production growth. Over 4.5 Bcf/d of new pipeline capacity is due online later this year, giving the basin running room to grow and alleviating pressure on Waha prices.
Featured Articles
- Analyst Insight
Waha Gas Prices Plunge on El Paso Restrictions
Waha natural gas prices plunged deep into negative territory last week, with restrictions on Permian outflows via El Paso a major culprit.
- Analyst Insight
Waha Natural Gas Prices Up but Still Negative as Maintenance Subsides
Permian outflows to the North picked up last week and slightly improved the price picture. But the gas outlook for the Permian remains bearish for the first half of the year.
- Analyst Insight
Waha Gas Bears Continue Unabated
Natural gas prices in the Permian remained extremely low over the past week, as issues stemming from apparent low takeaway on Permian Highway were exacerbated by a smaller outage on NGPL.
