Pipeline projects announced to expand Permian natural gas capacity
Three expansion projects were announced in May & June of 2022:
1) Gulf Coast Express – enter service by 12/2023
2) Permian Highway – enter service by 11/2023
3) Whistler Pipeline – enter service by 9/2023
New Pipeline announced in May: Matterhorn Express. It will be 490 miles long, able to transport 2.5 Bcf per day from Waha Hub to Katy, TX and should be in service by 3Q24.
The pipeline under construction – and expected to be in service by the end of 2022: Oasis Pipeline Modernization Project.
Energy production declined by record amounts in several states in 2020
In 2020, energy production in the United States fell by record amounts since the year before, mostly due to decreased economic activity during the pandemic. U.S. coal production fell by 25% ( its lowest level since 1965), crude oil production fell by 8%, natural gas decreased by less than 1%, renewable energy increased by less than 1% and nuclear generation fell by 2%.
Turmoil in the natural gas market spells trouble ahead
After the announcement that Russia's Gazprom would suspend flows to Germany via the Nord Stream 1 pipeline, European natural gas prices remain steady at rates almost 10 times higher than last year. In the United States, prices are significantly lower, but still rising, too. US prices have hit their highest level in 14 years. Increased energy use during heat waves, demand from Europe as countries try to stock up for winter and lagging production are some of the main causes of US jumps.