The Permian Gas Problem Is Just Getting Worse
- With less drilling, producers get stuck with gassier output
- U.S. gas growth seen coming from the Delaware sub-basin
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America’s top shale field is becoming increasingly gassy as drilling slows down, undercutting profits for explorers at a time when investors are demanding better returns.
Natural gas has long been a nuisance in the Permian, where a massive glut weighs on prices, with crude producers sometimes having to pay to get it hauled away or burn it off in a controversial practice known as flaring. Now the problem is intensifying as wells age and fewer new wells are drilled.