The Houston Livestock Show and Rodeo ended this weekend, and in the final days the Champion Junior Market Steer was auctioned for a record-tying $1 million. The steer, Woozy, was raised by 15-year-old Blaize Benson in San Angelo, Texas. But while West Texas beef is reaching breathtaking highs, West Texas natural gas prices are low enough to make producers woozy. According to Natural Gas Intelligence (NGI), the outright cash price of gas at Waha has been negative every day since March 12. The Waha price averaged -$0.25 throughout the past week.
Featured Articles
- Analyst Insight
Free Gas and Free Money in the Permian Basin
Natural gas prices at Waha have been negative for two weeks according to data from NGI. Lack of exit capacity has played a major role in exacerbating the price situation, with probable maintenance events affecting both eastbound and westbound flows.
- Analyst Insight
Permian Negative Streak Ends, At Least for Now
Natural gas prices at Waha have returned to the positive side, but more negative prices may return if capacity is constrained by more shoulder-season pipeline maintenance.
- Blog
Don't Blame Me - What's Causing Negative Gas Prices in the Permian and How Long Will They Last?
Natural gas prices at the Waha Hub in West Texas have been below zero for going on two weeks — that’s outright negative cash prices, not basis, which means Permian producers are literally paying to have their gas taken away. Ample supply along with weak demand have prompted an early start to the injection season this year and are putting downward pressure on U.S. gas prices more broadly. But why all the craziness now? One of the best ways to get a handle on the Permian gas-market meshugah is to examine gas pipeline flows within the basin and without, which, as it turns out, is the focus of our upcoming School of Energy Master Class. Today's RBN blog is a blatant advertorial for that event where we’ll be discussing gas-flow analysis, pipeline modeling and how they help explain why Waha gas prices have gone sub-zero.
