Article
Oil Is Near $90 And Gas Is Near $3. Same Wells, Different Markets.
Associated gas production in the Permian Basin continues to surge alongside oil drilling, but natural gas prices have diverged sharply from crude oil, creating significant challenges for contracts written under different price assumptions. With Henry Hub futures trading around $3 per million Btu while WTI crude hovers near $90 per barrel, operators and service companies face difficult questions about pricing mechanisms, curtailment rights, and minimum volume commitments that may no longer reflect current
Foley & Lardner LLP
