President Trump signed executive orders prioritizing fossil fuels while rolling back renewable energy efforts. These orders aim to expand oil and gas production, halt funding for
Why Texas Faces Natural Gas Glut
Ines Ferré, a Senior Business Reporter for Yahoo Finance, delves into the natural gas surplus gripping the US, particularly in Texas. Prices have plummeted due to oversupply, with the Waha Hub experiencing negative prices in recent months. The Permian Basin's abundance of natural gas, primarily a byproduct of oil production, coupled with insufficient transportation infrastructure, exacerbates the issue. Ed Hirs from the University of Houston underscores the disparity between supply and takeaway capacity. Analysts predict continued low prices due to high inventories and a mild winter. This surplus has prompted producers to scale back output, potentially impacting oil production in the region. Goldman Sachs analysts attribute a January drop in US oil output to transportation constraints. As a consequence, the Permian Basin faces reduced incentives for oil production amid plummeting natural gas prices.
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