Due to increased production levels and the capacity of the transport pipeline network, which caused supplies to build up in the area, natural gas prices in West Texas dropped to less than zero for the first time since 2020.
According to market vendors, the price of gas in the heart of Waha has dropped from around $7 per million calories a week ago to roughly $2 per million thermal units for the following day, according to the Bloomberg News Agency.
It is noteworthy that the negative prices mean that the producing companies pay money to another party in exchange for receiving the quantities produced from them that do not find storage capacities for them, which has not happened two years ago.
The dilemma of excess production was extended beyond its capacity by the routine repair of natural gas pipes.
In view of the disruption to the global gas supply caused by Russia’s invasion of Ukraine, which drove up gas prices to previously unheard-of heights, it is remarkable that natural gas production in the United States has increased to record levels. The majority of the rise in production came from Texas, which because to its enormous oil and natural gas reserves has some of the lowest energy prices in the country.
For the first time in two years, the cost of petrol in West Texas dipped below zero.
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