US Energy Infrastructure Strains Under Growing Demand
The US energy infrastructure is struggling to keep up with growing demand, leading to price spikes in various regions. The American Petroleum Institute's (API) latest snapshot highlights three energy markets that are affected by this issue.
Boston's winter heating bills have been higher than in nearby states despite its proximity to natural gas-producing regions. This is due to limited pipeline connections restricting the amount of natural gas reaching cities like Boston, resulting in upward pressure on regional prices.
In West Texas, the Permian Basin has experienced a surplus of natural gas production, which has outpaced takeaway capacity. As a result, local prices have frequently gone negative, with Waha prices trading below zero for 102 days this year.
California's gasoline prices skyrocketed when Iran closed the Strait of Hormuz, due to its reliance on seaborne imports and limited pipeline connections. The state received nearly half of its crude oil from foreign sources in 2025, making it vulnerable to global market disruptions.