Haynes and Boone, LLP Partner Kraig Grahmann talked with The Dallas Morning News about how a glut of natural gas from areas like the Permian Basin is driving down prices and forcing producers to rethink their drilling plans.
Here is an excerpt:
Seasonal guarantees have shifted in recent years as oversupply of natural gas has become normal, said Kraig Grahmann, head of Haynes and Boone’s Energy Finance Practice Group.
High supply levels are made worse by companies, largely in the Permian Basin, that bring up natural gas along with their more profitable target — oil.
“They’re having to dump it in the market at any price and sometimes at negative prices,” Grahmann said.
To read the full Dallas News article, click here.