Waha has long been a benchmark pricing hub for West Texas gas but its rising prominence lately has to do with its proximity to the fastest-growing crude oil basin (basins, really) in the U.S., if not the world — the Permian. Prices are expressed in $U.S. Longer term, however, Waha forwards were trading at their highest levels in years on expectations gas supplies from oil drilling in shale basins like the Permian will drop after low crude prices this year due to coronavirus demand destruction caused energy firms to cut rigs. Much of this incremental supply will rely on the pipeline interconnects and takeaway capacity available at the Waha trading hub to get to desirable markets. If you have already purchased a subscription, be sure you are logged in For additional help or information, contact us at firstname.lastname@example.org or 888-613-8874. In response to the oil price plunge, U.S. energy companies have slashed spending on new drilling, cutting the oil and gas rig count to a record low in August. (Reuters) - Next-day natural gas prices for Wednesday at the Waha hub in West Texas plunged to record negative levels - meaning some drillers are paying those with spare pipeline capacity to take the unwanted gas and are getting nothing for it. This is in part due to mild weather and increased hydroelectric generation in the West, both of which have reduced demand for gas from the hub. (Reuters) - Spot natural gas prices at the Waha hub in the Permian basin in West Texas turned negative for the first time since April as mild weather cut demand for the fuel. futures tumbled to a record low in negative territory earlier this year after coronavirus caused demand for crude to drop faster than producers can cut output. Cruel Summer? Moreover, the pace of growth shows no signs of slowing. Spot prices at the Waha hub fell to minus $3.38 per million British thermal units for Wednesday from minus 2 cents for Tuesday, according to Intercontinental Exchange (ICE) data. But that was before U.S. oil CLc1 futures tumbled to a record low in negative territory earlier this year after coronavirus caused demand for crude to drop faster than producers can cut output. I Knew You Were Trouble - Rulings on KXL Permit Cloud Other Oil and Gas Pipeline Projects, We Take Care of Our Own, Part 2 - Pemex's Struggles Bode Well for U.S. Spot gas prices at Waha so far this year are averaging 27 cents/MMBtu below national benchmark Henry Hub, compared with just 13 cents/MMBtu back in the same period last year (source: Bloomberg). Waha (yellow dot in Figure 1) is the fast-rising supply hub located in West Texas at a crossroads of the Permian producing region and markets in the Southwest, Midcontinent and Texas Gulf Coast regions, as well as across the border in Mexico.