PERMIAN BASIN, Texas (Nexstar) — Natural gas is at an all-time high globally. Nations in Europe and Asia see prices up to triple what we see in the Permian Basin.
The price for natural gas has doubled during 2021, and there’s no relief in sight.
It may be a shock to you because it’s been cheap in recent years.
“We’re really a global market with natural gas, we produce it here,” according to Kyle McGraw, Immediate Past Chairman of the Permian Basin Petroleum Association. “But the US exports gas in a liquefied form called LNG, liquefied natural gas. And it goes on the high seas and goes to the foreign markets.”
In the Permian Basin, residents know a thing or two as far as how precious this commodity can be.
“You know, we had the winter Apocalypse. We had the exceptionally cold weather. That was challenging here,” said McGraw. “We as a nation, we consume more natural gas and therefore didn’t store as much we use to store.
Mcgraw says that we’re at the five-year average for storage right now, which is something he doesn’t consider to be historically low.
As it pertains to what’s happening globally with the price for natural gas supply, we shouldn’t see the extremely high prices other parts of the world are experiencing in the Permian Basin.
This should remain the case, according to experts, when winter comes back through the basin in a few months.