Associated natural gas production out of the Permian Basin rebounded sharply a few weeks ago, indicating production curtailments that went into effect in May in response to low crude oil prices are coming back online. Just as abruptly as gas production dived in early May, it lurched upward in late June, nearly back to where it was before the shut-ins began. But the rig count has continued falling to a record low, and indications are that many of the wells drilled over the past few weeks have not been completed. The meager drilling and completion activity suggests that the natural declines of existing wells, which were temporarily exaggerated by the shut-ins, will now be felt — and felt for as long as rig counts remain depressed — not just in the Permian but also in other oil-focused basins. Daily gas production volumes in the Permian in the past 10 days or so already are slipping, despite shut-ins tapering. Today, we examine the latest production trends in the Permian and what it will mean for the gas production outlook.
It will be six months at least before the market will know with certainty what’s been happening with crude oil production in the Permian in recent weeks — that’s how far out the Texas state production data is lagged. However, we can use what information is available now to model and estimate production, as we do in our Crude Oil Permian report. And one really good, early tell of producers’ activity in the basin comes from looking at what has happened with natural gas production — the inevitable byproduct of all the oil-directed drilling going on in the Permian and other oil basins.
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
Unlike in the oil market, there is a vast amount of nearly real-time pipeline flow data available in the natural gas market, based on actual nominations reported by each interstate pipeline moving in and around the Permian — and in the case of the extensive network of intrastate pipelines in Texas, which aren’t required to report flows, there’s often a way to “see” those flows via intrastate connections with interstate pipelines or to model them.
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About the song
"Gimme Some Truth" was written by John Lennon and appears as the first song on side two of Lennon's second solo album, Imagine. Work on this song started in January 1969, at The Beatles' Let It Be sessions. There are bootleg recordings of The Beatles performing early versions of this song. "Gimme Some Truth" is a protest song, reflecting Lennon's frustration about what was going on in the world at that time. Personnel on the record were: John Lennon (vocals, electric guitar), George Harrison (electric guitar, slide guitar), Nicky Hopkins (piano), Andy Davis (acoustic guitar), Rod Linton (acoustic guitar), Klaus Voorman (bass), and Alan White (drums).
Imagine was recorded between February and July 1971 at Ascot Sound in Berkshire, England, Abbey Road in London, and The Record Plant in New York City. Produced by John Lennon, Yoko Ono, and Phil Spector, the LP was released in September 1971, and went to #1 on the Billboard Top 200 Albums chart. It has been certified 2x Platinum by the Recording Industry Association of America. A single of the song "Imagine" was released in October 1971 that went to #3 on the Billboard Hot 100 Singles chart.
John Lennon was an English singer, songwriter, and musician. He was the founder, co-lead vocalist, and rhythm guitarist for The Beatles. The songs he co-wrote with Beatles band mate Paul McCartney are some of the most successful songs in music history. After the breakup of The Beatles, Lennon concentrated on his solo career with his second wife, Yoko Ono. He released 11 studio albums, three live albums, 14 compilation albums, and 23 singles. Lennon's solo albums have sold more than 14 million copies in the U.S. Lennon was murdered outside of his Manhattan apartment in 1980.
