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%NaturalGas prices in Texas have turned negative, which means that producers are paying pipeline operators to take it away.

The problem has resulted from a decline in natural gas prices as too much of the energy commodity is being produced.

Natural gas continues to trade in positive territory throughout the rest of the U.S. But the negative pricing in Texas could spread in coming weeks and have ripple effects throughout the entire energy sector, say analysts.

The hub for natural gas in Texas called “Waha” is situated outside Pecos and serves producers in the oil rich Permian Basin that stretches across West Texas and into New Mexico.

Natural gas is produced throughout the Permian Basin as a byproduct of the area’s main activity, crude oil production.

The U.S. Energy Information Administration blames warm winter weather for depressed natural gas demand and prices, as well as a lack of pipelines to take the gas away from Texas to other markets where it can be sold.

The average price for natural gas elsewhere in the U.S. is currently at $1.80 U.S. per million British Thermal Units, which is weak by historical measures but still in positive territory.

In the past, energy companies have managed an oversupply of natural gas by flaring it or burning it off at the source. However, flaring is damaging to the environment and banned in most jurisdictions of the U.S.

Natural gas producers are hoping for a rise in demand from overseas exports of natural gas. Otherwise, prices in the U.S. are likely to continue sinking due to what analysts are calling the “Texas glut.”