The natural gas spot price spread between the Permian Basin, as priced at the Waha Hub in western Texas, and the U.S. national benchmark Henry Hub in Louisiana has grown considerably in the past year. Natural gas prices at Waha are nearly a dollar per million British thermal units (MMBtu) lower than Henry Hub prices. This spread widened as the ability to transport the increased natural gas production in the Permian Basin in western Texas and southeastern New Mexico was constrained by existing pipeline capacity.
Read: https://www.eia.gov/todayinenergy/detail.php?id=36673
I actually think that lack of natural gas takeaway capacity may do more to slow oil production growth in West Texas than the lack of oil pipeline capacity. Operators may be forced to shut in wells that produce a lot of gas or they may not want to keep flaring, which burns up a lot of valuable gas and associated NGLs.
Permian Basin Natural Gas Prices
Permian Basin Natural Gas Prices
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group