Posted on 04/05/2024 3:28:18 PM PDT by linMcHlp
At first glance, nothing extraordinary jumps out about what’s happening in the Permian to depress Waha prices. Permian supply is in line with or lower than where it has been all winter, except for during the mid-January freeze-offs.
Is it pipeline maintenance? Weirdly low demand?
We’ve dug into it and determined that no single driving factor or event is to blame for the recent run of negative prices.
Instead, it’s a combination of low demand (both within the basin and without), as well as pipeline work along several key routes, including El Paso Natural Gas (EPNG) and some of the newer greenfield pipelines headed east out of the basin.
(Excerpt) Read more at rbnenergy.com ...
How about an abnormally warm winter and spring?
bttt
I lean toward some “lack of interest” in terms of processing (work to do), because of Biden blocking new export and pipeline infrastructure.
Yet crude prices seem to be up.
A tale as old as time: NG prices spiked after Putin’s invasion. Investment skyrocketed and a bunch of new production came online long after the crisis passed.
I remember a few years ago when Waha was negative.
$4/gal outside of Phx
Waha Daily Natural Gas Price Snapshot - Natural Gas Intel
Waha Descripton:
Contains transactions at the Waha Hub within the Permian Basin in West Texas.
Includes deals into and in the vicinity of the Waha DCP/Atmos Hub, Enstor Waha Hub, and Waha (EPGT) Texas Hub.
Interconnecting pipelines/systems include:
- Agua Blanca
- Atmos
- Arena West Texas Pool (comprised of the Waha Header, TransPecos, OWT, Roadrunner, and Comanche Trail)
- El Paso
- Energy Transfer
- Enterprise Texas
- Gulf Coast Express
- NGPL
- Northern Natural
- Oasis
- Oneok Westex
- Permian Highway
- and Transwestern.
Our index also includes deals within the El Paso – Waha pool, and the Oneok Westex pool, points that we also publish as separate listings.
“Yet crude prices seem to be up.”
BECAUSE crude prices seem to be up.
In WaHa, NG is a byproduct of oil production and they are pumping as much oil as the can.
High gas price is the best way to sell EVs
The Henry Hub of the West.
They have good coffee.
That has to be a factor. I pre-paid for my propane this past winter, I still have $400 bucks of credit left.
One of the best ways to get a handle on the Permian gas-market meshugahm is to examine gas pipeline flows within the basin and without . . .
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