The Permian Production Problem

Hart Energy’s Stratas Advisors saw the Permian Basin as a land of opportunity for midstream operators in its second-quarter 2018 report. The big play’s growth in crude and associated natural gas production has pushed the limits of existing infrastructure to such an extent that the basin’s prices are lower than in other plays.

In August, the Permian’s central Waha Hub saw gas prices at $1 per million British thermal units below the benchmark Henry Hub in South Louisiana. Prices for Permian crudes have sagged, as well.