In 2016, for instance, gas flows leaving the Permian typically clocked in at about 3.6 billion cubic feet per day (Bcf/d), according to S&P Global Platts . That number has ballooned to 6.3 Bcf/d as of May 2018. Obviously, the surge in gas flows from the Permian is the result of a massive increase in gas production. Gas output has surged more than 135 percent since 2013 and is expected to rise to just shy of 10.5 Bcf/d (including natural gas liquids) in June 2018. The problem is that the region’s ceiling on takeaway capacity stands at about 7.3 Bcf/d. Skyrocketing natural gas production has unsurprisingly weighed on regional prices. According to S&P Global Platts, natural gas prices at the Waha Hub in West Texas traded at an 8-cent per MMBtu discount to Henry Hub two years ago, but that discount widened to about $1/MMBtu this month. With so […]