Wheeling

The shale revolution has done away with natural gas price volatility, at least for now.  And that has been a bad thing for natural gas storage.  Merchant storage facilities make most of their money on either seasonal gas price differences or short-term price fluctuations, or both.  Unfortunately, the oversupplied market has flattened out prices, removing the primary source of storage value.  But there are other ways of extracting value out of natural gas storage. Today we explore several of these strategies.