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Texas Operators Turning to Flaring amid Weak Gas Prices: Reuters

NATGAS
Energy BulletsCommodities

Operators drilling for oil in Texas are rushing to dispose of excess natural gas amid a supply glut and weak prices, according to Reuters.

  • The Railroad Commission of Texas (RRC) approved 21 exemption requests from operators, enabling them to flare. This is more than four times the level it approved this time last year.
  • Producers face a dilemma as crude prices have held above $80/b, but gas prices remain depressed.
  • Natural gas prices in several US states have traded below zero several times in April amid poor demand, ample renewable power supplies and pipeline outages, Reuters said.
  • The Waha hub in west Texas closed as low as minus $2.99/MMBtu in mid-April, the lowest since Dec. 2022. While prices have recovered, they remain depressed.
  • Permian gas output is expected to rise by 140 mcf/d) to 25.2 billion bcf/d in May, according to the EIA.
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Operators drilling for oil in Texas are rushing to dispose of excess natural gas amid a supply glut and weak prices, according to Reuters.

  • The Railroad Commission of Texas (RRC) approved 21 exemption requests from operators, enabling them to flare. This is more than four times the level it approved this time last year.
  • Producers face a dilemma as crude prices have held above $80/b, but gas prices remain depressed.
  • Natural gas prices in several US states have traded below zero several times in April amid poor demand, ample renewable power supplies and pipeline outages, Reuters said.
  • The Waha hub in west Texas closed as low as minus $2.99/MMBtu in mid-April, the lowest since Dec. 2022. While prices have recovered, they remain depressed.
  • Permian gas output is expected to rise by 140 mcf/d) to 25.2 billion bcf/d in May, according to the EIA.