The sheer size of new shale discoveries in West Texas means producers could pay customers to take associated gas output and still make a profit from the oil production, according to an executive at LNG project developer NextDecade. The Wolfcamp and Alpine High finds in the Permian Basin are also a game-changing for Texas’s LNG exports.
“There is so much associated gas in Texas, we can literally afford to pay people to take it away so we can produce oil,” Kathleen Eisbrenner, chairman and chief executive of NextDecade, told the CWC World LNG Summit in Barcelona on Wednesday. The executive said the hypothetical scenario was based on a Brent benchmark price of $50-60 per barrel.
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