Commodities
South Central Natural Gas Storage Deficit Persists Amid Record Permian Production
Natural gas stored in the South Central region has fallen below both its five-year average and year-earlier levels, despite record production in the Permian Basin.
The region's storage deficit is a double-digit percentage compared to last year, with inventories down 27% from their 2025 levels. Meanwhile, robust demand has helped offset strong production.
The South Central area includes key gas storage hubs such as salt caverns and depleted oil reservoirs, which have seen significant declines in inventory. The region's storage deficit is expected to continue into the future, affecting prices at major trading points like Henry Hub.