• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 3 hours 5 Tweets That Change The World?
  • 13 hours The power of propaganda has no boundaries: Which country has larger territory US od China
  • 7 hours Freedom of Speech for Dummies
  • 2 hours Boring! See Ya Clowns, And Have Fun In Germany
  • 2 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 6 hours The Mysterious Iranian Tanker
  • 16 hours South Korea Unveils Fighter Jet Mock-Up Amid Program Challenges
  • 19 hours Iranian Oil Tanker struck by missiles off Jeddah
  • 13 hours How The US Quietly Lost The 1st Amendment
  • 18 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 8 hours Climate Protesters Blocking Roads etc...
  • 14 hours Crazy Stories From Round The World
Alt Text

Extreme Volatility In U.S. Natural Gas Market Is Here To Stay

Despite some bearish forecasts, natural…

Alt Text

Asian LNG Prices Hit Three-Year Lows

Spot prices for LNG in…

Alt Text

What’s Behind The Drop In Asian LNG Prices?

Asian LNG prices tanked on…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Texas Natural Gas Prices Plunge To All-Time Low

Natural gas prices at the Waha hub in West Texas plummeted to record low negative levels on Wednesday, as pipeline constraints and problems at compressor stations at one pipeline stranded gas produced in the most prolific U.S. shale oil basin.

Real-time or next-day prices at the Waha hub in Texas have stayed at negative levels since March 22, so drillers have had to pay companies with capacity to ship the gas via pipeline.

On Wednesday, the spot Waha hub prices plunged to minus $3.38 per million British thermal units (MMBtu), from minus 2 cents for Tuesday, data from the Intercontinental Exchange (ICE), cited by Reuters, showed. 

Adding to the chronic pipeline constraints for both oil and gas in the Permian basin, last month equipment failures at two compressor stations along the El Paso Natural Gas Pipeline in New Mexico resulted in El Paso declaring a force majeure and reducing the takeaway capacity of the pipeline.

Gas production in the Permian has been rising in lockstep with crude oil production, and even though gas takeaway capacity has attracted less media attention, pipeline constraints for natural gas are similar to those of crude oil pipeline capacity.

The natural gas takeaway capacity constraints have resulted in more gas flaring in the Permian on the one hand, and in a record-high spread between the Waha gas hub price and the U.S. benchmark Henry Hub in Louisiana, on the other hand.

On Wednesday, the differential jumped to an all-time high of US$6.14 per MMBtu, beating the previous record of US$5.85 from February 1996, according to data from ICE and Refinitiv Eikon compiled by Reuters.

To compare, the spread averaged just over US$1 per MMBtu throughout 2018.

In the Permian, drillers have been literally burning profit because of pipeline constraints. Surging volumes of natural gas have become a kind of a side product that drillers prefer to burn off instead of shutting in wells and missing out on monetizing the oil production gushing out in the Permian. Company executives admit that they wouldn’t flare as much gas as they do if they had a choice.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play