New natural gas pipelines are expected to resolve the gas glut in the Permian, amid negative regional prices for most of the first half due to insufficient transport capacity.

The Permian gas glut and related negative price pressure are directly linked to US crude oil and gas prices. Permian gas is a by-product of oil extraction; without enough pipeline capacity, gas prices are depressed, creating operational costs for oil producers. New pipelines could clear this market, affecting production profits and regional oil drilling momentum.