West Texas Drowning in Natural Gas as Booming Oil Output Exacerbates Regional Glut

• Natural gas prices in West Texas have plummeted to multi-decade lows, down 43% in the past year, due to oversupply in the region • Prices at the Waha Hub in West Texas have even turned negative recently as producers pay others to take excess gas • The oversupply is largely due to booming oil production in the Permian Basin which yields natural gas as a byproduct • Lack of sufficient pipeline infrastructure to transport the gas out of West Texas exacerbates the glut • Curtailing oil production could help resolve the oversupply but reduces financial incentives for drillers