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Page added on August 6, 2015
$1 Natural Gas: Crazy Town?
If you take a look at natural gas pricing in the Northeast not every price metric is depressed. We ask Bloomberg Intelligence energy expert Vincent Piazza to talk us through the pricing.
“When you think of the Appalachian area,” Vince says, “Think of the Northeast Marcellus and then the Southwestern section of the Marcellus.” There is some imbalance between the two — and so over the broader Northeast, you will continue to have intermittent, wide pricing differentials due to this imbalance.
There is, Vince says, a “structural, secular shift of significant capacity relative to the cyclical, season demand needs within the area.”
11 Comments on "$1 Natural Gas: Crazy Town?"
Nony on Thu, 6th Aug 2015 7:48 pm
NE PA is the worst for pricing, but SE is pretty bad too.
You are talking about an essentially International scale resource. Add onto the Marcellus, the Utica-Point Pleasant as well as the Upper Devonian. And that’s not just corny talk any more, it’s real. Look at the WVU Utica study or the recent record setter gas wells from EQT, Consol, and Range Resources.
That whole Appalachian province probably has over a thousand TCF. Maybe two thousand.
Plantagenet on Thu, 6th Aug 2015 8:13 pm
The US is in a NG glut. Fortunately the Obama administration has green-lighted the construction of several NG export facilities, and it won’t be long until more of the excess US NG will be available on the world markets.
BobInget on Thu, 6th Aug 2015 9:29 pm
Yup, You can be sure, domestic gas prices will rise as exporting takes hold.
Meanwhile, have we given enough credit to affordable NG that came along ‘just in the nick’
keeping folks warm during some serious cold spells last two winters?
Nony on Thu, 6th Aug 2015 10:01 pm
Boston could have had very cheap gas for the last couple winters, but they didn’t allow pipelines to be built.
BobInget on Thu, 6th Aug 2015 11:19 pm
NIMBYs fighting LNG exports on Oregon coast.
OK, but this would also excludes a larger pipeline to Southern Oregon. Larger pipes carry more gas, for less money.
GregT on Thu, 6th Aug 2015 11:24 pm
Those NIMBYs should be acknowledged as NOOPs.
Not on our planet. We only have one, and it is worth saving.
shortonoil on Fri, 7th Aug 2015 8:08 am
No one is going to invest money in a pipeline for an industry that has wells that deplete by 70% per year, that is mired in exploding debt, and that is losing money on every cubic foot they pump – unless they are backed by the FED – who guarantees all investments no matter how stupid they are.
Apparently they are doing that so when their cronies go broke, so will everyone else! It will ensure social equilibrium. Families that eat out of the same garbage can together, stay together.
Davy on Fri, 7th Aug 2015 8:27 am
Good Morning:
Energy Credit Risk Hits 1000bps As WTI Crude Nears $43 Handle
http://www.zerohedge.com/news/2015-08-07/energy-credit-risk-hits-1000bps-wti-crude-nears-43-handle
Kenz300 on Fri, 7th Aug 2015 10:37 am
Fossil fuels are killing the planet….. investments in fossil fuels are on the decline….
Investments in wind and solar are growing daily…..
Climate Change is real….. we need to deal with the cause (fossil fuels)
Listen Up: Pope Calls for the Replacement of Fossil Fuels, Renewable Energy and Solar Subsidies – Renewable Energy World
http://www.renewableenergyworld.com/articles/2015/07/listen-up-pope-calls-for-the-replacement-of-fossil-fuels-renewable-energy-and-solar-subsidies.html
Kenz300 on Fri, 7th Aug 2015 10:47 am
Wind and solar are the future………
All fossil fuels will end up being a bad investment long term….
Listen Up: Utilities Agree That Fossil Fuels Can’t Compete Against Renewables – Renewable Energy World
http://www.renewableenergyworld.com/articles/2015/08/utilities-agree-that-fossil-fuels-can-t-compete-against-renewables.html
Kenz300 on Sat, 8th Aug 2015 11:22 am
Fossil fuels are cooking the planet. It is time to move on………
Listen Up: Utilities Agree That Fossil Fuels Can’t Compete Against Renewables – Renewable Energy World
http://www.renewableenergyworld.com/articles/2015/08/utilities-agree-that-fossil-fuels-can-t-compete-against-renewables.html