Permian Basin gas prices… EIA – Commodity Research Group

April 2, 2018 by Jim Colburn Leave a Comment

This is from the EIA’s Natural Gas Weekly Update:

“The difference between natural gas spot prices in the Permian Basin and at the Henry Hub has generally widened as Permian production has increased, which is consistent with the lack of sufficient takeaway capacity for associated gas. From March 2014 through March 2017, spot prices at the Waha hub in the Permian Basin averaged 13¢ per million British thermal unit (MMBtu) lower than those at the Henry Hub in Louisiana. Since then, the differential has widened, with the Waha hub price averaging 76¢/MMBtu lower than the Henry Hub price from March 1–27, 2018.”

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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