For the first time in years, the Permian Basin’s chronic natural gas takeaway constraint is beginning to ease — and in a big way. Major pipeline projects entering service this year and next will add roughly 5.3 Bcf/d of new egress capacity from the Waha area, led by the Gulf Coast Express (GCX) expansion, Hugh Brinson Pipeline and Blackcomb Pipeline. That buildout should materially improve Waha pricing and reduce the risk of severe in-basin discounts, but it also raises a new set of questions. In today’s RBN blog, we’ll discuss the major Permian gas pipeline projects scheduled to come online in 2026 and 2027, how much new capacity they will provide, and consider what the shift means for Waha prices, Gulf Coast balances and the U.S. natural gas market.
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September 9-10 | Houston, TX
This is the first blog in a series examining the outlook for the major U.S. producing basins. The Permian, a major topic of discussion at our upcoming School of Energy: Fundamentals, is the country’s largest oil-producing basin and one of the biggest drivers of U.S. gas growth, which makes it the natural place to begin. Its crude-oil-focused wells produce large and growing volumes of associated gas, but getting that gas out of West Texas has become one of the market’s biggest challenges and a major constraint on oil production. In the series ahead, we will look at the Permian’s major producers and the basin’s next set of challenges, including what increased production will mean for the NGL market. For today’s blog, let’s start with the big gas pipeline projects that have come online or are set to begin operations this year or next.
In June, Kinder Morgan brought its Gulf Coast Express expansion (pink line in Figure 1 below) online. The project added 570 MMcf/d, or about 0.6 Bcf/d, of capacity from the Waha hub (blue circle to left) to the Agua Dulce hub (blue circle at bottom) in South Texas. It is fully subscribed and can move about 2.6 Bcf/d in total. The new capacity helped Waha prices recover sharply from their lows (more on this below) but didn’t solve the Permian’s takeaway problem on its own.
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About the song
“Fly Like an Eagle” was written by Steve Miller and appears as the second song on side one of the Steve Miller Band’s ninth studio album of the same name. With its chorus of “time keeps on slippin’ away,” the song addresses how fast time moves, even during turbulent times. Released as a single in August 1976, it went to #2 on the Billboard Hot 100 Singles chart and has been certified Platinum by the Recording Industry Association of America. Personnel on the record were: Steve Miller (lead vocals, guitar, ARP Odyssey), Lonnie Turner (bass), Gary Mallaber (drums) and Joachin Young (Hammond B3 organ).
The album, Fly Like an Eagle, was recorded at CBS Studios in San Francisco during 1975-76. Produced by Steve Miller, it was released in May 1976 and went to #3 on the Billboard 200 Albums chart. It has been certified 4X Platinum by the RIAA. Four singles were released from the LP. As a side note, popular 1970s Tulsa cover band Paradise, which included Novi Labs’ Rusty Braziel on bass and Mickey McMahan on lead guitar, covered “Rock’n Me,” the hit single off this album, and combined it with Free’s “Alright Now.” Since Miller’s song borrowed heavily from the Free tune, it made a good combination that would fill up a dance floor.
The Steve Miller Band is an American rock band formed in San Francisco in 1966. After appearing at the Monterey Pop Festival and backing Chuck Berry for his Live at the Fillmore Auditorium album, the band signed with Capitol Records in November 1967. They released their debut album, Children of the Future, in 1968. They have released 18 studio albums, six live albums and 30 singles. They have sold over 30 million records worldwide. Steve Miller was inducted into the Rock and Roll Hall of Fame in 2016. He has an ASCAP Golden Note Award and a star on the Hollywood Walk of Fame. Thirty-five members have passed through the Steve Miller Band since its inception. Miller still plays an occasional show and last appeared in July at Lincoln Center in New York City.
"About the Song" -- written by Mickey McMahan , RBN Director of Musicology
