# Analysis: Lower Permian gas production, higher prices to drive shift in regional flow dynamics

> Permian gas production dropped to an average of about 10.6 Bcf/d in September. Waha cash traded at $1.40/MMBtu while the 2021 curve sat at $2.65/MMBtu. Pipeline flows toward Midcontinent and San Juan are expected to fall as West Texas prices rise.

- Date: 2020-09-15 · published 2020-09-15T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/8360-analysis-lower-permian-gas-production-higher-prices-to-drive-shift-in-regional
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Lower Permian output and a wider price gap with other regions could tighten gas supply in other basins and support prices there. This is a regional flow shift rather than a broad feed-market event.

## Read by commodity

- NATGAS: bullish ▲

## Sources

- spglobal.com: https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/natural-gas/091520-lower-permian-gas-production-higher-prices-to-drive-shift-in-regional-flow-dynamics

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.