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Why Lower Oil Prices Will Boost Natural Gas
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Why Lower Oil Prices Will Boost Natural Gas
Oil wells in the Permian basin in west Texas and New Mexico produce associated gas, which means the oil/gas combination that comes out of the ground has to be separated. … If crude output drops farther than the EIA expects, natural gas output from the Permian will fall too. This will occur just as demand from data centers and LNG export terminals is ramping up.
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