tag:blogger.com,1999:blog-6199410.post7851337720469779242..comments2023-12-27T08:02:59.927-05:00Comments on Energy Outlook: How Will Low Oil Prices Affect Natural Gas?Geoffrey Styleshttp://www.blogger.com/profile/18047970229068397492noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6199410.post-72348155326720268012015-06-02T08:54:42.645-04:002015-06-02T08:54:42.645-04:00Nony,
For gas the connection to a hungry market is...Nony,<br />For gas the connection to a hungry market is always crucial, and so far infrastructure to deliver Marcellus output to users has lagged production growth. With prices in the field so low as a result, it's no surprise that the EIA is forecasting declining production in the years ahead. See: http://www.reuters.com/article/2015/05/28/natgas-marcellus-production-idUSL1N0YA2LJ20150528 <br /><br />Critics will no doubt jump on that is a sign the potential of the Marcellus was overstated. On the plus side, the longer a wide differential between PA and TX persists, the greater the incentive to build infrastructure to take advantage of it, which will naturally narrow the gap, making production more attractive and perhaps putting it back on a growth track. Geoffrey Styleshttps://www.blogger.com/profile/18047970229068397492noreply@blogger.comtag:blogger.com,1999:blog-6199410.post-46381392979799358572015-05-30T17:08:45.775-04:002015-05-30T17:08:45.775-04:00The split between local prices in the Marcellus an...The split between local prices in the Marcellus and the HH is fascinating. When/if they get the infrastructure set up to pipeline the gas out of the region (perhaps to the Gulf), then production may take off again. Even at 2.50 or below. After all, they are dealing with 1.50 now, in region.Nonynoreply@blogger.com