local distribution company

Natural gas prices remain at near-record lows, but with so much production being driven by still-favorable crude oil economics there’s a distinct possibility — especially given the warm winter we’re in — that gas inventories may test storage capacity this year, perhaps as early as Labor Day. Of course, there are many market factors that might prevent this outcome, including lower production, a scorching-hot summer, and gas-to-coal fuel switching. But it could happen. And whenever we approach the limitations of natural gas infrastructure, we’ve seen time and again the disruptions and dislocations the market must deal with. The most obvious market signals are prices. But when it comes to gas flows another important barometer is the use of operational flow orders (OFOs). In today’s blog, we update one of RBN’s Greatest Hits and take a deep dive into the world of OFOs and what they can reveal about the state of the gas market. 

Plato may have said it, Shakespeare wrote about it, and anyone who has engaged in a friendly debate about the best classic car, hunting rifle, or wristwatch knows it to be true: beauty lies in the eye of the beholder. Of course, not everyone sees value the same way, or value in the same things. That’s at the heart of the dispute over the recently announced acquisition of Questar Pipeline LLC by Southwest Gas Holdings. The prospective buyer sees Questar as a picture-perfect addition, while an activist investor sees it as a butt-ugly mistake. In today’s RBN blog, we continue an examination of the Southwest Gas/Questar deal with a look at Questar’s relationship with its local distribution companies, potential competition with the nearby Kern River Pipeline, and challenges Questar may face in serving power generators and direct industrial load.