Multiple causes lead to Permian Basin prices falling to all-time lows

摘要

A trifecta of reasons led to a freefall for Waha and El Paso Permian cash basis for next-day flows during the last two weeks.Waha cash basis dwindled to an all-time low of minus $8.46/MMBtu April 3,after averaging minus $1.43/MMBtu over the past year.EP Permian cash basis came in at minus $7.92/MMBtu on April 3,after averaging minus $1.36/MMBtu over the past year.Prices in other Permian production area pricing points,such as EP West Texas and Transwestern,also plummeted to historical lows amid record-high production,limited takeaway capacity and maintenances.Prices continue to fall even though Permian basin production has been coming off recently and is set to stand at 8.1 Bcf April 4,after averaging 9.2 Bcf in the last 10 days of March,according to data from S&P Global Platts Analytics.The three-year average during the same time period in March is 5.9 Bcf/d.