Natural Gas News – March 30, 2018
Natural Gas News – March 30, 2018
Oil-Rich Permian Basin has a Texas-Sized Natural Gas Problem
Dallas News reported: America’s most prolific oil field is now its worst market for natural gas. A pipeline shortage that’s leaving gas trapped in West Texas’ Permian Basin means prices for the fuel there are the lowest of any major U.S. hub, wresting that distinction from Appalachia’s Marcellus Shale. Prices for Permian gas, produced alongside oil in the play, have tumbled 30 percent from a year ago, while output rose to a record. And the pipeline crunch is also pummeling the region’s oil market. All that gas production is creating a dilemma for drillers, who may be forced to curtail oil output if they can’t get their gas to market. Producers can burn off some of the gas — a process known as flaring — but state regulators typically won’t allow that to happen indefinitely. And as mild spring weather limits demand for the heating fuel, explorers may be giving their gas away, according to broker Ion Energy Group LLC. In the next three to four weeks, “natural gas prices in the Permian can go to zero because it’s literally a byproduct,” Kyle Cooper, consultant for Ion Energy in Houston, said by telephone. For more on this story visit dallas.com or click http://bit.ly/2pQRKGi
Natural Gas Rise 5.6% this Week Despite a Smaller than Expected Decline in Inventories
FX Empire reported: Natural gas prices rose on Thursday on the last trading day of the week. The market will be close on Friday due to the Good Friday holiday. Prices increased another 1.43%, notching up a total gain for the week of 5.6%. The EIA released its weekly inventory numbers that showed that natural gas stocks declined less than expected. Natural gas prices continue to move higher, and are poised to test target resistance near the 38.2% Fibonacci retracement level of 2.95. For more visit fxempire.com or click http://bit.ly/2GkpZAi
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