• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 12 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 11 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 12 hours Solar Industry Lays Claim To The 2020s; Kicks Off The Solar+ Decade
  • 7 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 1 hour California Threatens Ban on ICE Cars
  • 1 min Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 1 day DUG Rockies: Plenty Of Promise, Despite The Politics
  • 20 hours Iran v USA the perfect fire triangle
  • 17 hours U.S. and Turkey
  • 10 hours Shell ‘to have commercial wind farms’ by early 2020s
  • 8 hours Get First Access To The Oilprice App!
  • 1 hour How can Trump 'own' a trade war?
  • 2 hours China, U.S. Hold 'Productive' Trade Talks In Beijing
Alt Text

Meet America’s Newest $9 Trillion Climate Change Solution

Democratic Presidential hopeful and Washington…

Alt Text

Can The Bull Run In Oil Markets Continue?

The market is currently trading…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

Are Natural Gas Markets In Crisis?

Friday April 26, 2019

1. Permian gas prices depressed

(Click to enlarge)

- Natural gas at the Waha Hub in the Permian basin plunged deep into negative territory earlier this year and will remain depressed until new pipelines come online.
- But prices could rise later this year if Mexico begins to import more gas. “Although with significant unutilized export capacity to Mexico, the risk of increased Mexico demand growth providing an outlet for constrained Permian natural gas keeps 3Q19 Waha basis relatively supported,” Bank of America Merrill Lynch wrote in a report.
- A brewing problem for Permian drillers comes in the form of rising gas-to-oil ratios, a sign that the frenzied drilling is showing signs of wear and tear on the basin. That could lead to higher rates of well shut-ins, which would ultimately provide a boost to Permian natural gas prices.
- “[T]he potential for high gas to oil ratio (GOR) wells to shut-in limits Waha weakness, and could provide a brief price spike if too many wells shut in production,” Bank of America said. However, “[a]ny price spike would likely be brief as we expect shut-ins would quickly return to service.”

2. LNG prices crashed as supplies continue to rise

(Click to enlarge)

- The wave of new LNG export terminals coming online this year have led to a plunge in prices.
- “Asian LNG demand digested nearly all of the LNG supply growth…

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News