The Permian Basin’s burgeoning natural gas output is muscling its way into markets that have been dominated by other plays, threatening to dent growth aspirations in Appalachia and the Haynesville Shale by 2020, an OPIS analyst said during a recent webinar.
The culprit is associated gas, which accounted for 7% of the U.S. gas market in 2011 and will command a 30% share in 2020, said Charles Nevle, senior director of OPIS (Oil Price Information Service), a unit of IHS Markit. Associated gas also made up about two-thirds of the growth in total natural gas production between 2011 and 2018.
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