Permian E&Ps Seek Alternate Sales Channels Amid Low Natural Gas Prices

Permian E&Ps Seek Alternate Sales Channels Amid Low Natural Gas Prices

Permian E&Ps Seek Alternate Sales Channels Amid Low Natural Gas Prices

March 4, 2024--Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--Through its Beyond6 subsidiary, Chevron Corporation (NYSE:CVX) (San Ramon, California) is selling compressed natural gas (CNG) to Detmar Logistics on Highway 80 in Midland, Texas, and in about 60 total locations nationwide. Permian-based Diamondback Energy (NASDAQ:FANG), through its subsidiary and a partnership with Verde, is looking to turn natural gas into gasoline because it may be more profitable than selling the gas at Waha. Supplying gas to bitcoin miners also has been an alternative.

Permian Basin producers make most of their profits from oil and natural gas liquids (NGLs), so natural gas is often more of a problem than a profit center, especially as pipelines back up.

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