Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

WSJ: Growing gas glut threatens west Texas oil boom

Published 11/21/2017, 12:59 PM
Updated 11/21/2017, 12:59 PM
© Reuters.  WSJ: Growing gas glut threatens west Texas oil boom

© Reuters. WSJ: Growing gas glut threatens west Texas oil boom

  • Natural gas is gushing out of west Texas, and that's a problem for energy producers who are running out of places to send it all, possibly forcing them to cap wells or curtail drilling, according to a WSJ report.
  • Pipelines running from the Permian Basin to the Gulf Coast’s chemical plants and export terminals are essentially full; for oil and gas producers, the excess supply could potentially force oil and gas producers to take drastic measures until new pipelines to the Gulf are built and planned power plants come online in Mexico, according to the report.
  • The growing gas glut already is weighing on regional prices: Natural gas prices at the Waha trading hub have fallen to much as $0.57/MMBtu, or ~20%, below spot prices at Louisiana’s Henry Hub, and analysts forecast the gap exceeding $1 next year.
  • Permian Basin operators include: PXD, CXO, XEC, EOG, PE, DVN, NBL, XOM, CVX, OXY, WPX, RSPP, APC, APA, FANG, SM, EGN, MTDR, QEP, ECA, CPE, LPI, CDEV, KMI
  • Now read: Devon's Growing Tier 1 Meramec Opportunity

Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.