Oil production that could flood the natural gas market… WSJ

The Wall Street Journal discusses the spillover gas production expected to come from new oil production in the Permian:

“The oil-rich Permian Basin is emerging as a major source of new natural gas, a development that could deepen an existing glut and pressure gas prices for years.

The West Texas region has become the most prolific spot for horizontal oil drilling and fracking. The new oil wells also produce natural gas, making it a nearly free byproduct that energy companies can then sell on top of the more-sought-after crude…

But because Permian drillers are after oil, gas prices could hit historic lows, probably as little as $1.50 a million British thermal units, before it stopped them from drilling, according to energy consulting firm Wood Mackenzie.”