By Jamie Brick, McKinsey Energy Insights
Permian gas prices will remain weak for the next few years despite nearly 2 Bcf/d of additional pipeline capacity coming online by 2020. This is because the Permian, predominantly a shale oil play, has large quantities of associated gas production.
Brick
McKinsey Energy Insights expects Permian crude and NGL production to grow from 3.3 MMbpd in 2017 to 8.8 MMbpd by 2025, which in turn should cause natural gas production to rise from 7.1 to 16 Bcf/d over the same time frame.
The Texas Gulf Coast and, to a lesser extent, Mexico are the most likely destinations for incremental Permian gas volumes. While t
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