Permian Activity Is Firing Up But Holding Back Regional Natural Gas Prices
Forbes reported: Industry discourse suggests that the Permian Basin is powering U.S. shale oil and gas output. In fact, the hydrocarbon rich basin between western Texas and southeastern New Mexico is rarely out of energy market chatter these days. According to the U.S. Energy Information Administration (EIA), the Permian may experience the biggest boost in production levels in the entire country. It is forecast to climb by 42,000 barrels per day (bpd) to 4.136 million bpd in May. There is little reason to doubt that projection, according to Matt Johnson, National Account Manager at Frac spread count specialists Primary Vision. For more on this story visit forbes.com or click https://bit.ly/2Zo1sQT
Is The Natural Gas Meltdown Finally Here?
Investing reported: It took a while but it finally seems to be happening. The argument that natural gas prices can’t be at the high $2 levels with production at record highs and the weather getting cheerier by the day seems to be sinking into the market. In under a week, gas futures on the New York Mercantile Exchange’s Henry Hub have lost nearly 6%, the most since February for such a stretch. Prices are also hovering near three-year lows. With the U.S. Energy Information Administration expected to report at 10:30 AM ET (14:30 GMT) today its third weekly gas inventory build for spring, questions surface on whether gas bears will find ammunition from the numbers to take the selling into overdrive. Analysts’ consensus is that gas in storage expanded by 87 billion cubic feet last week. Historical data shows such a build would already be large for this time of year, a phenomenon caused by friendly spring weather that has spared most American homes from having to turn on the heat lately. For more on this story visit eastoregonian.com or click https://bit.ly/2V7xLEa