Pipeline outage sent Waha gas to record negatives
By Richard Rostad, analyst, Oil & Gas 360

The natural gas takeaway crunch in the Permian has become extreme, with producers paying to get rid of gas instead of getting paid for it.

Gas production in the overall Permian has grown even more rapidly than oil, and the EIA estimates that the basin will produce over 14 Bcf/d in April. This is 53% higher than the 9.2 Bcf/d the Permian produced in January 2018. Oil production, for comparison, has grown by 46% over the same period.

While Waha gas has traded at a discount to Henry Hub for most of the Permian boom, companies were still receiving at least some revenue for their gas. That changed this week, as Kinder Morgan’s El Paso Natura...

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