Gas Becomes Pricey Problem for Permian Basin Oil Drillers: Chart
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Natural gas prices in West Texas extended their plunge into negative territory through Tuesday, posing a challenge for crude producers in the Permian, the world’s largest oil basin. Drillers must now pay customers to take away gas, a byproduct of crude production, as pipeline constraints keep supply trapped in the region. That adds to costs and may tempt explorers to burn off the excess fuel, a practice frowned upon by both regulators and environmentalists.