Chevron Exploring Options for Shipping Permian Gas Around Waha Glut

摘要

Chevron is on the hunt for ways to move gas to premium markets outside the reach of the glutted Permian Basin,where prices have collapsed this year at the congested regional sales hub.Gas makes up a significant portion of Chevron's production stream in the Permian,where output grew 55% year-on-year to around 421,000 barrels of oil equivalent per day in the second quarter,with plans to reach 900,000 boe/d by 2023.The company estimates that about 50% of its Permian production is oil,around 16% is natural gas liquids(NGLs)and the rest is dry gas.But Chevron received just 60￠ per million Btu on average for its Permian gas in the second quarter as prices at the Waha hub-the nearest delivery point-at times dropped into negative territory thanks to the huge volumes of gas being produced in association with tight oil(NGW Apr.8’19).Chevron cited lower US gas realizations,both at Waha and at Henry Hub,as headwinds for its earnings in the second quarter.