So I am really missing something here. Why is there not someone out there noticing a big no brainer opportunity and investing themselves in the infrastructure needed to sell shale gas to local utilities?
See Trib today: Equitable’s plan to use more local gas is challenged
There is a deeper story embedded in all of that. What does this really say about the ability of drilled shale gas in Pennsylvania to make it to market? The story is pretty much saying somebody thinks there is a market failure occurring: Gas being developed that can’t even make it to the most local of markets without a regulated subsidy to make it happen. “To market, to market……” as the saying goes.
Speaking of markets doing as they ought to. PG points out the plunging price of ethane: Drillers rattled as ethane, propane prices plunge. Funny how that works. Big new supply. Lower prices. If I read the news correctly the big new supply of ‘wet’ gas in nearby Ohio is only beginning to flow so this trend will continue yes?
To keep sight of the big picture. It’s all about the storage capacity of natural gas in the US. There are pundits for every position, but a compilation of a lot of the relevant stats are here. It really all comes down to the winter weather. Gas producers may rejoice that the Farmers Almanac at least says the eastern US will be colder this winter compared to last.