Why Cheap Gas Won't Stop the Permian Glut

Oil drillers in the Permian Basin pump natural gas as a byproduct—they chase oil prices, not gas prices. When gas is cheap (now near $2.83 per million BTU), they don't drill less. This means supply keeps rising regardless of price signals. The result: excess gas fighting for pipeline space, just like 2019–2020 when prices went negative.