East Daley Analytics was quoted in the Midland Telegram Reporter article.
Permian Basin operators seeking to move the natural gas produced alongside crude oil are falling victim to the basin’s growing pains.
East Daley Analytics has issued a report detailing how Permian gas prices at Waha are diving amid concerns about pipeline takeaway out of the region.
Rob Wilson, vice president, of product at East Daley, told the Reporter-Telegram by email signs of tightening takeaway capacity began showing up in the Waha spot price in early September. Waha is trading about $3 below the Henry Hub spot price. That illustrates the negative effect tight takeaway capacity is having on prices.
“We are fairly bearish on natural gas prices in the near term with the growth we are projecting in the Permian Basin. Currently, our projections show the Permian hitting capacity around November or December of this year,” Wilson wrote.
-1.png)