In the latest edition of the NATGAS Permian report, the Permian supply forecast and near-term historical revisions incorporate the latest available data from Novi Labs. The updated forecast combines Novi Labs' AI-driven energy intelligence and upstream analytics with RBN's assessment of current market conditions and planned pipeline buildout. Last week, Permian production ranged from 21.9 Bcf/d to 22.3 Bcf/d, averaging 22.1 Bcf/d, which is down slightly from the week prior. With the Gulf Coast Express expansion now online, the basin has some breathing room which has allowed prices in the basin to rebound above zero. So far, despite the new takeaway capacity online, production has been relatively flat, as shown in the orange line in the graph below. However, the rig count is up by 15 since the end of March indicating production growth is coming.
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
Negative Permian Gas Price Persists, but Change is on the Horizon
The price of natural gas remains negative at Waha. But movement in the forward curve suggests that the market is looking to a brighter future in the second half of the year.
