The Permian Basin remains the country’s most bountiful play for oil production, but natural gas has become a major dilemma.
Lack of sufficient infrastructure has left the Permian overflowing with gas, giving the basin the dubious distinction of having the lowest prices of any major U.S. hub. The prices will only get worse as long as the pipeline shortage makes it hard to move the abundance of gas to market.
Some relief is on the way with the 430-mile Gulf Coast Express that will move gas from West Texas to eastern Texas, but the $1.75 billion project isn’t expected to come online until October 2019. The next pipeline won’t show until 2022 at the earliest.