• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 10 days e-truck insanity
  • 9 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 8 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 9 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 10 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
OPEC+ Faces Fork in the Road

OPEC+ Faces Fork in the Road

Some analysts have noted in…

U.S. Natural Gas Prices Jump After Pennsylvania Pipeline Explosion

Natural gas prices have jumped in the aftermath of an explosion Friday in western Pennsylvania which destroyed one home, damaged at least three others and seriously injured one person.

Following the incident, U.S. natural gas prices reached their highest since January, largely due to the fact that the blast disrupted shipments.

The explosion, which disrupted shipments on the Pennsylvania segment of Spectra Energy Corp.’s Texas Eastern line carrying the fuel from the Gulf Coast to New York, has immediately impacted on the gas prices. The pipeline system was transporting 1.3 billion cubic feet of gas a day before the incident.

Related: Venezuela’s Electricity Blackout Could Cut Off Oil Production

A spokesman for Spectra Energy—the interstate pipeline operator--said the pipeline was one of four parallel lines running through the rural area in western Pennsylvania. One of the other pipelines was out of service, and the remaining two were being drained of natural gas. The spokesman said the sector of the pipeline damaged by the explosion was built in 1981 and a 2012 inspection resulted in no need for repair or remediation.

The coldest weather since mid-April has also played a role in boosting gas consumption amid curtailed supplies. Gas futures capped a second straight monthly gain on speculation that low prices will reduce output from shale formations as weather-related demand chips away at the biggest seasonal stockpile glut we’ve seen in four years.

Related: What Do Brent Spreads Know That We Don’t

“It seems like this is a slightly delayed price reaction to the news of the pipeline explosion,” Kyle Cooper, director of research at IAF Advisors in Houston, told Bloomberg. “We have some below-normal temperatures in the Northeast, which is compounding concerns about supply constraints.”

Natural gas for June delivery rose 10 cents, or 4.8 percent, to $2.178 per million BTU on the New York Mercantile Exchange, the highest settlement since Jan. 29. Gas climbed 11 percent this month.

Officials from the federal Pipeline and Hazardous Materials Safety Administration are now investigating the cause of the explosion, while the interstate pipeline operating company, Spectra Energy, said it was taking steps to reduce harmful effects on the environment.


By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • frank on May 02 2016 said:
    why should the consumer have to be the ones who take the economic hit on this ? have they not insurance to cover faulty equipment , lax maintenance or what have you . they decide with fixed discussion on where and when these pipelines are placed fully aware of casualty from destruction . they sell everyone the dream of benefit for all in the area . suddenly the water is not potable than the fault lines are unstable finally a main line blows out and its a shock we have a desert in pa. this move just proves one thing { profit ,profit, profit} everything else is just in the way. we really need to see more free energy not windmills . zero point energy, bloom box , cold fusion. sold to people at a one time fee and stop playing with coal and gas for corporate greed the economy would be fixed. every time someone comes up with the right solution they get taken out by the big energy machine do some research . start with MR. Tesla , free energy is all around us yet were all happy with rubbing two sticks together .... lies

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News