As the U.S. and other countries report a growing demand for natural gas to run their power plants and meeting the booming requirements of data centers, crude oil producers in the Permian Basin are taking notice. And making changes.
And they’re starting to focus on natural gas production and not just king oil. A new report from East Daley Analytics suggested there has been a fundamental shift in producer behavior in the Basin because rising LNG and data center demand have resulted in a growing natural gas market, boosting it by 20% or more.
As the Houston Chronicle reported, the East Daley study showed how producers in the Basin havse cut their capital expenidture guidance by about $2 billionn.
“The company has dropped its Permian Basin rig forecast by more than 30 rigs by 2027, equating to almost 400,000 barrels a day less crude oil production and nearly 1 billion cubic feet less residue gas production,” reported the Chronicle.
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