I’ll be blunt: Lower 48 natural gas production is too high going into 2027.
No, I’m not talking about today’s Lower 48 production because of outages, but the peak production rate of ~113 Bcf/d is something the market will not be able to handle in 2027.
The issue for natural gas producers this year isn’t that the producers themselves are producing more. No. In fact, I would argue that natural gas producers, as a whole, have been very disciplined.
It’s the pesky associated gas production that’s wreaking havoc on the 2027 outlook. Yes, it’s the Permian producers... again.