News & Macrohigh confidence
Chevron plans power plant to address persistent negative gas prices in US Permian Basin
oilprice.com · September 10, 2026 · Week 2026-37
Summary
Persistent oversupply of associated gas in the US Permian Basin has led to negative pricing for a significant portion of the year. In response, IOCs like Chevron are exploring localized demand solutions, such as a planned 2.67 GW gas-fired power plant to supply a Microsoft data center, turning a waste product into a power source.
Strategic Implication
Highlights the growing challenge of associated gas disposal in US shale, which could indirectly influence global supply balances by either constraining oil growth or creating new localized gas demand.