associated gas

Negative West Texas Prices Weigh Down Weekly Spot Natural Gas Average; Futures See-Saw

Negative West Texas Prices Weigh Down Weekly Spot Natural Gas Average; Futures See-Saw

Despite bullish national production readings, weekly natural gas cash prices retreated alongside a West Texas supply glut and festering headwinds in the region.  NGI’s Weekly Spot Gas National Avg. for the April 8-12 period lost 25.0 cents to $1.210/MMBtu. West Texas prices, as they did the prior week, proved the principal source of weakness. Waha…

April 12, 2024
Alaska Looking to Secure Natural Gas Supplies with LNG Pipeline Deal

Alaska Looking to Secure Natural Gas Supplies with LNG Pipeline Deal

The state of Alaska and Pantheon Resources plc are negotiating a deal to boost in-state natural gas inventories using a proposed LNG feed gas pipeline to transport associated volumes from the North Slope. London-based Pantheon has been advancing development plans for an additional 66,000 acres in Alaska’s Ahpun and Kodiak fields since submitting the top…

April 3, 2024
Associated Natural Gas a Gift – and a Curse – for North Dakota Oil Producers

Associated Natural Gas a Gift – and a Curse – for North Dakota Oil Producers

North Dakota energy regulators expect a modest uptick in Bakken Shale oil production this year, though challenges persist around managing the immense volumes of liquids-rich natural gas extracted as a byproduct.  A case in point was the deep freeze on Wednesday (Jan. 17), which shut in about 700,000 b/d of oil and 2 Bcf/d of…

January 22, 2024
Permian Natural Gas Flows Reach Record Level, Curb Prices Amid Key Infrastructure Expansions

Permian Natural Gas Flows Reach Record Level, Curb Prices Amid Key Infrastructure Expansions

Surging production and new takeaway capacity paved a path for record-high natural gas supplies flowing from the prolific Permian Basin. A 550 MMcf/d expansion of Kinder Morgan Inc.’s (KMI) Permian Highway Pipeline (PHP) entered service at the start of this month and amplified Whistler Pipeline LLC’s recently completed 500 MMcf/d expansion in the Permian.   “Permian…

December 12, 2023
OPEC-Plus Oil Cuts May Drive U.S. Associated Natural Gas Production Momentum, Dampen Prices

OPEC-Plus Oil Cuts May Drive U.S. Associated Natural Gas Production Momentum, Dampen Prices

OPEC-plus, the consortium of major oil producers led by Saudi Arabia, agreed to a substantial production cut late last week that could bolster prices and fuel more demand for Permian Basin crude. This, by extension, could drive continued lofty levels of associated natural gas from the prolific basin. Associated gas, produced alongside oil, contributed to…

December 5, 2023
Associated Natural Gas Production Surges in Permian Basin, Bolstering Supply and Taming Prices

Associated Natural Gas Production Surges in Permian Basin, Bolstering Supply and Taming Prices

Production of associated natural gas – fuel produced in concert with oil – surged in the prolific Permian Basin over the past five years, supporting strong total supplies and, for much of this year, helping to keep U.S. prices in check. Associated gas produced from the top three oil plays in the Permian region –…

November 7, 2023
Precision Drilling Forecasting Stronger North American Natural Gas, Oil Activity in ‘24

Precision Drilling Forecasting Stronger North American Natural Gas, Oil Activity in ‘24

Calgary-based Precision Drilling Corp., whose oilfield expertise is concentrated in North America, is anticipating “a sustained period of elevated natural gas drilling activity” in advance of the sooner-than-later wave of LNG export facilities, both in Canada and the Lower 48. CEO Kevin Neveu discussed the third results and the forecast for the year ahead during…

October 30, 2023
LNG Exports Seen Boosting North American Natural Gas Demand Through Next Decade and Beyond

LNG Exports Seen Boosting North American Natural Gas Demand Through Next Decade and Beyond

North American natural gas demand is likely to grow by roughly 25% over the next 10 years and stay resilient through 2050 as the world shifts to lower-carbon energy, according to new projections from Wood Mackenzie. LNG exports are expected to drive the incremental demand, which will largely be supplied through continued growth in associated…

May 19, 2023
U.S. Associated Gas Production Projected to Expand Through Mid-Century, EIA Says

U.S. Associated Gas Production Projected to Expand Through Mid-Century, EIA Says

U.S. associated natural gas output – a byproduct of oil production – is expected to grow through 2050, continuing and amplifying a long-term trend, according to a federal outlook. The Energy Information Administration (EIA) said in a research note Tuesday that, in its benchmark scenario that considers only the laws and regulations adopted through mid-November…

April 11, 2023
U.S. Onshore Associated Natural Gas Output Recorded First Decline in 2020 Since 2016

U.S. Onshore Associated Natural Gas Output Recorded First Decline in 2020 Since 2016

Associated natural gas production from U.S. onshore oil plays fell in 2020, marking the first year/year decline in output since 2016, the Energy Information Administration (EIA) said in a research note published Monday. Production of associated gas from the Permian and Anadarko basins, as well as from the Bakken, Eagle Ford and Niobrara shales, fell…

August 25, 2021
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