Gas production in the Permian Basin averaged 22.7 Bcf/d during the week ended July 20, which was a similar number to the prior week. Production in the basin popped up after the Gulf Coast Express expansion came online but has since stabilized and remained at this record level. So far in July production has averaged 22.7 Bcf/d, up by 0.6 Bcf/d over June levels. The Gulf Coast Express expansion added 0.6 Bcf/d of new capacity, so the supply increase has been near one-to-one with capacity added, which is not unsurprising given how constrained the basin was prior to the new expansion coming online. However, prices in the basin have been above zero since the project came online, indicating there may still be a little wiggle room in the market for production.
Featured Articles
- Analyst Insight
Gulf Coast Express Expansion Ends Waha’s Negative Streak
Waha natural gas prices were positive again for the week that just ended. An expansion of the Gulf Coast Express pipeline provided a critical boost by raising outflow capacity.
- Blog
Open The Door – New Pipeline Capacity Unlocks Supply Potential for Permian Natural Gas
Natural gas prices in the Permian spent the first half of the year in the red. Then, in mid-June, Kinder Morgan flipped a switch and now Waha prices are back above zero. The “switch” was a compression expansion on Gulf Coast Express, which added a desperately needed 570 MMcf/d of takeaway capacity.
- Analyst Insight
Permian Gas Outflows Up as Prices Climb
Natural gas prices in the Permian are climbing higher as more capacity becomes available to outside the production zone.
