U.S. Has More Natural Gas Than It Can Use; Permian Prices Negative

What in the world is going on with natural gas prices, around the planet and here at home? How is the Iran war affecting natgas prices abroad and here? According to a Bloomberg analysis article, the Iran war has disrupted global energy supplies, driving gas prices up by roughly 40% in Europe and 50% in Asia. Yet the U.S. faces the opposite problem — a massive natural gas surplus. Permian Basin producers in West Texas have generated so much gas as an oil byproduct (called associated gas) that pipeline infrastructure cannot keep pace, pushing regional prices to historic lows of -$9.60/MMBtu. Yes, that's MINUS $9.60! It's hard for M-U molecules to compete with producers willing to pay customers to take their natgas.

---

To view this content, log into your member account. (Not a member? Join Today!)