Natural gas production in the Permian basin averaged more than 21.5 Bcf/d in July, a new record high for the basin, and is pushing higher as August begins. Production was above 21.9 Bcf/d in the back half of the week. The high production numbers have increased the pressure on Waha prices, which were below $0.50/MMBtu on average last week and below $0.10/MMBtu over the weekend. Prices are still in positive territory, but if supply continues to grow they could head back below zero particularly in the fall when Mexican power and domestic demand starts to fall.
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- Analyst Insight
High Supply During Spring Maintenance Keeps Waha Natural Gas Prices in the Basement
Natural gas supply in the Permian Basin is significantly higher than last year, despite a dip this week. With high supply and maintenance on some pipelines, cash prices were below zero for most of the week.
- Analyst Insight
Gas Production in Permian Reached New Highs
Natural gas production is at new record highs in the Permian Basin as receipts on El Paso swell.
- Analyst Insight
Permian Gas Production Rebounds Too Soon?
Production of natural gas bounced back in the Permian last week, but a maintenance event this week may put the crunch on capacity.
