Oslo-based research firm Rystad Energy said July 28 natural gas output from Permian Basin is expected to rebound in the second half of 2020, but the low-investment environment created by covid19 “will likely postpone approvals for important key pipelines which may necessitate increased flaring from 2023 onwards.” In the second half of the year and into 2021-23, Rystad expects Permian gas production to see “a rapid boost assuming a $45-$50 WTI environment.” The reactivation of curtailments is expected to push Permian gas output back to 11.4 billion cubic feet per day in September, return to record levels by late 2021 and reach 16 billion cfd by the end of 2023.
Rystad added, “We remain confident that both the Permian Highway Pipeline and the Whistler project are both moving ahead… For other pipelines, however, serious concerns about feasibility remain, and many projects have been delayed or put on hold.”