Dry gas production in the Northeast region averaged 36.1 Bcf/d for the week covering December 27 to January 2, which is nearly identical to the previous week’s figure. Total demand in the Northeast (defined as the East Coast from Maine to Virginia and extending west to Ohio) averaged 27.4 Bcf/d for the week in question, which is 0.8 Bcf/d lower than the previous week. Much of the decline can be attributed to Residential and Commercial demand, which fell 0.4 Bcf/d week-on-week. However, that decline was concentrated in the warmer days early in the week and dissipated as the weather became colder around New Year’s Day.
Featured Articles
- Blog
Unchain My Heart - Is the Northeast Natural Gas Market No Longer Pipeline Capacity Constrained?
Natural gas production growth in the U.S. Northeast—the primary driver of U.S. production growth in recent years—has slowed dramatically in the past few months, up no more than 1 Bcf/d year-on-year, compared with growth in increments of 3 and 4 Bcf/d in previous years. Despite the slowdown, the regional balance continues to lengthen, with supply growth outpacing demand. Yet, regional gas prices, specifically at key supply hubs, which previously were struggling under the weight of oversupply coupled with limited access to growing demand markets, are strengthening. Is this the beginning of the end of takeaway constraints and distressed supply pricing in the region? Or will constraints reemerge this summer? Today, we provide an update of Northeast gas supply/demand balance.
- Blog
One Step Closer - Market Impact of 2016 Northeast Natural Gas Production Trends
The Northeast has been the biggest driver of U.S. natural gas production growth in recent years, and while rig counts have come down, output from the Marcellus and Utica has remained resilient and helped offset declines in other supply regions. In the process, the Northeast has reinvented itself, shifting from a gas-thirsty consuming region to one of the biggest gas net producing regions in the U.S. But pipeline flow data indicates that Northeast production peaked in February and growth has flattened since then. Is the data signaling a long-term peak or is this a temporary lull? Today, we continue our analysis of the Northeast supply/demand balance with a closer look at recent production trends.
- Blog
Still They Ride - U.S. Northeast Natural Gas Producers Gear Up for Winter, Takeaway Expansions
Northeast production growth, the primary driver of overall gains in U.S. natural gas output in recent years, has largely stalled in 2016. Rig counts in the Marcellus/Utica dropped to near six-year lows, and the region has been facing constraints—from takeaway capacity and in the past month or two from storage injection capacity. But market factors are again about to roil the Northeast: 1) winter heating demand is on its way, and 2) more takeaway capacity has come online in the past month and still more is coming before the year is up. Today, we review recent Northeast natural gas production trends using pipeline flow data from Genscape and assess factors that will impact regional production this winter.
