West Texas Producers Face A Growing Glut Of Natural Gas

Nov 23, 2017

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West Texas oil producers are running out of places to send the growing glut of natural gas that is a byproduct of the recent oil boom in the region.

As Fox Business reports, all of the natural gas pipelines that stretch from West Texas to the gulf are basically full. And the gas can’t be sent north, because northern natural gas markets are already supplied by producers in Canada and the Rockies.

The market saturation has already sent natural gas prices tumbling even lower. And the oversupply could mean that some West Texas producers will be forced to cap wells or slow down on oil drilling.

Many producers have resorted to simply burning the gas, a process that is harmful to the atmosphere but is often allowed in loosely-regulated Texas.

Meanwhile, producers are hoping to pipe some of the gas to a waiting Mexican market—once new pipelines are built.