Breaking the deadlock: the Permian’s associated gas problem

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Associated gas disposal is a real problem for producers in the Permian Basin, the prolific oil producing region in Texas which has played a major part in pushing US oil production to over 12 million bbl/day in 2019. A shortage of pipeline capacity to ship gas out of the region has led to low, even negative, gas prices and to a continuing growth in flaring and venting of gas. The midstream infrastructure gap also extends to the Permian’s access to the myriad LNG export possibilities on the Gulf Coast, which offer an apparently attractive outlet for the Permian’s associated gas.

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