Spencer Jakab writes about gas production outstripping takeaway capacity in the Marcellus region in the Wall Street Journal…
“Before the shale boom, the Northeastern U.S. and the Midwest had plenty of pipeline capacity, but it carried gas north from places like Texas and Louisiana. Now the Northeast has too much gas and needs to ship it to the Midwest’s heating and industrial customers. Eventually the old trading flows should reverse so gas goes south to the Gulf of Mexico’s massive petrochemical facilities and export hubs.
This race to build may run into more misfortune, though. Cheap northeastern gas still will have a hard time competing with growing volumes of “associated” production coming out of the oil patch closer to the Gulf of Mexico that will be sold at any price.”
Here is what the “shale boom” looks like:
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