The other impact a collapse in crude prices would be significantly altering the trajectory of the US gas market. Currently, associated gas is growing and is expected to grow 5.7 Bcf/d by 2019 from a 2016 base. Much of this associated gas growth is being driven by activity in the Permian, and due to impending gas takeaway constraints in the Permian could, along with the completion of Rover out of Appalachia, upend the gas market in the next 12-18 months (request a sample of our latest Upstream Outlook report for more detailed analysis). However, if oil prices collapse and rigs fall 30% from where they are today, associated gas volume growth would be a much more muted 1.5 Bcf/d by 2019 compared to 2016. Should further weakness in crude prices scenario play out, the lack of associated gas pummeling the market would have a positive impact on a gas market that is increasingly trending towards becoming oversupplied.
Read more: https://btuanalytics.com/low-crude-prices/