Permian Gas Producers Shut Wells After 124 Days of Negative Waha Prices
Updated
Updated · Bloomberg · Jun 8
Permian Gas Producers Shut Wells After 124 Days of Negative Waha Prices
1 articles · Updated · Bloomberg · Jun 8
Summary
124 straight days of negative Waha Hub prices have pushed some Permian producers to shut in wells, especially those with high gas-to-oil ratios, to curb losses.
Pipeline constraints are keeping regional gas trapped in the basin, forcing drillers to pay buyers to take supply even as natural gas is produced alongside more profitable oil.
Permian Resources and Devon Energy are among the large operators that have curtailed output from gas-heavier wells.
The shut-ins highlight a split in the Permian: an Iran war-driven oil rally is boosting crude economics while stranded gas remains deeply distressed.