Growing Gas Glut Threatens West Texas Oil Boom

21 Nov 2017   Shale Gas

Natural gas is gushing out of West Texas, a byproduct of frenzied drilling for oil . That is a problem for energy producers, who are running out of places to send it all. Pipelines running from the region’s Permian Basin to the Gulf Coast’s chemical plants, cities and export terminals are essentially full. Drillers in the Rockies and Canada already supply markets in the north and west. There is plenty of room on pipelines running south to Mexico, which has emerged as a major market for U.S. producers, but there is a catch: much of the gas distribution infrastructure and power plants there that would buy the fuel haven’t been built yet. The growing gas glut is already weighing on regional prices. Natural gas prices at the Waha trading hub in West Texas have fallen to much as 57 […]

Tags:

Comments are closed.