Natural gas prices in Texas are negative and producers burn it off while shortages loom elsewhere
Fortune • • business
Key Points:
- Spot prices for natural gas at the Waha trading hub in the Permian Basin recently dropped as low as -$9.75 per million BTUs, with expectations of hitting -$10 due to pipeline capacity constraints during seasonal maintenance.
- The Permian Basin produces both oil and gas, but limited gas pipeline infrastructure causes local surpluses and negative gas prices, leading to increased flaring at five-year highs, although oil revenues keep production steady.
- Global natural gas prices have surged due to disruptions from the Iran conflict, including the closure of the Strait of Hormuz and damage to Qatar’s LNG facilities, causing significant supply shocks affecting Asia and Europe.
- European gas futures rose about 35% amid efforts to replenish inventories after
