• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 2 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 53 mins Would bashing China solve all the problems of the United States
  • 1 min COVID 19 May Be Less Deadly Than Flu Study Finds
  • 1 hour Model 3 cheaper to buy than BMW 3 series.
  • 5 hours China to Impose Dictatorship on Hong Kong
  • 2 hours Incompetent "Journalists"
  • 11 mins Can I Sue This Site for If People Post Inaccurate Information?
  • 6 hours Thugs in Trumpistan
  • 1 hour Pompeo's Hong Kong
  • 20 hours Iran's first oil tanker has arrived near Venezuela
  • 24 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 21 hours Let’s Try This....
  • 1 day HVDC Cheaper Than Low-carbon Natural Gas
  • 13 hours 60 mph electric mopeds
  • 1 day Oil and Gas After COVID-19
The U.S. Becomes The World’s Swing LNG Producer

The U.S. Becomes The World’s Swing LNG Producer

The United States has turned…

Will Shale Giant Chesapeake Go Bankrupt?

Will Shale Giant Chesapeake Go Bankrupt?

U.S. shale gas pioneer Chesapeake…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Great Divide Developing in U.S. Natural Gas

Bentek Energy managing director Rusty Braziel sees a great divide developing in U.S. natural gas.

Bentek are one of the leaders in tracking and analyzing American gas pipeline flows. Where gas is flowing, who's using it, and at what price.

Speaking at the LDC Gas Forum Northeast in Boston this week, Braziel told industry professionals that America may have made some mistakes in designing its gas pipeline network over the past several years.

He notes that the boom in shale gas has created a price disparity between east and west. Shale gas plays are located mostly in the east, and carry lower breakeven prices. Between $3.10 and $4.00 per mcf, according to Bentek estimates.

By contrast, conventional gas plays are more concentrated in the west. And come with higher price tags, beginning in the $4.50 per mcf range.

Cheaper gas in the east, expensive in the west. And yet, over the past years pipeline companies have been busy building new pipe like the Rockies Express to take gas from western producing areas to markets in the northeast. As Braziel summed up, "About $15 billion has been spent on taking gas from where it's more expensive to where it is cheap. It was a mistake."

That's a pricey mistake. And one that's not easy to fix. Several pipeline companies are now looking at reversing directions on pipelines initially intended to run west-to-east. This "backhaul shipping" may become more prominent as shale gas development continues in the east.

Yet another sign of the severe dislocation shale gas has caused in U.S. (and global) gas markets. Dislocations create mis-pricing, and mis-pricing creates investment opportunities.

Here's to the beast in the east,

 

By. Dave Forest of Notela Resources


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News