Permian trip notes: attitudes on associated gas

We recently spent a few days in Midland and wanted to share trip notes from the heart of the Permian. Instead of discussing well performance and frac hits, every conversation this time around immediately turned to gas-related topics. Permian associated gas will add more volumes to the market than both the Marcellus and Haynesville. And there’s no sign of growth slowing. At the same time, there will be continued tightness in gas takeaway this year. While flaring has traditionally been a short-term solution, it’s becoming increasingly unfavorable as Permian players face pressure to adopt ESG programs. What can operators do to avoid selling gas at severe discounts or even a loss?