Permian gas seeks exits

The glut of associated gas production in the Permian Basin has led to a scramble to build new takeaway capacity, although significant relief will not come before 2021

The Permian is now the second-largest contributor to US shale gas production after the Appalachian Basin. However, the play’s growth is being driven by different dynamics, as the region’s unconventional operators are primarily targeting crude, with associated natural gas largely a by-product of the oil drilling taking place. In contrast with dry gas plays where it is the primary target, gas in the Permian has often been treated as an afterthought—and even a nuisance. But, as infrastructure starts to catch up with production, opportunities are emerging to harness associated gas output to create additional value. That Permian activity is driven far more by the economics of oil drilling than ga