gulf supplies

Over the past six months, natural gas production in the Marcellus has continued to ramp up, despite low gas prices and pipeline capacity constraints.  It would have grown even faster if capacity had not held back well completions.  But new pipeline capacity is coming, and as it comes on line, the production growth rate will accelerate.  In the not too distant future, the Northeast will no longer need imports from Canada.  Then imports from the Midwest will be backed out. And eventually all inflows from the U.S. Gulf region could come to a halt.  That will be a vastly different gas market than we’ve known over the 25 years since decontrol.  In today’s blog we’ll drill down into some of the important implications of this, the Great Flow Reversal of 2016.