November 27, 2018 – Reuters
Get your natural gas in Texas for 25 cents, if you can
By: Scott DiSavino; Editing by Steve Orlofsky and Jonathan Oatis
(Reuters) - Next-day natural gas prices for Tuesday at the Waha hub in the Permian basin in Texas tumbled almost 80 percent to their lowest on record because of limits on the amount of gas that can move out of the region by pipeline.…
Read the full article here: https://www.reuters.com/article/us-natgas-waha-pipelines/get-your-natural-gas-in-texas-for-25-cents-if-you-can-idUSKCN1NW1EV
…Permian drillers want the oil, which is much more valuable than gas. In some cases the lack of infrastructure to remove gas from the region has forced some producers to burn or flare off some of the gas they pull out of the ground.
The cause of the price collapse was “very likely driven, in our view by continued associated gas production growth poured into a region that won’t see new greenfield pipeline capacity for at least 10 months,” analysts at RBN Energy said in a report on Tuesday, noting “we are about to enter a period of complete exhaustion of Permian gas takeaway.”
RBN said that increase in associated gas production was due in part to the expansion of Plains All American Pipeline LP’s Sunrise oil pipeline, which enabled oil trapped in the Permian to flow to the Gulf Coast…
