There is an onslaught of surplus natural gas supply bearing down on the Henry Hub in South Louisiana. More than 60 natural gas pipeline projects are in the process of reversing the continent's gas flows to move gas out of the Northeast, and much of that production will be moved to the Gulf Coast. That gas will slam into supplies moving in to Louisiana from the west, sourced from “wet” gas and associated gas from crude oil plays in TX, NM, OK and ND. Demand from gas fired power generation, industrial gas use and LNG exports will eventually absorb the incremental supply, but not for a few years. We’ve seen this movie before, in the 2008-10 timeframe when Rockies gas battled it out with new shale supplies from the Haynesville and Fayetteville. But this time there is a big difference in the economics of production. Today we summarize the conclusions from a new deep-dive report from RBN Energy and BTU Analytics.
To access the remainder of The Battle for Henry Hub – Ominous Implications of Natural Gas Oversupply you must be logged as a RBN Backstage Pass™ subscriber.
Full access to the RBN Energy blog archive which includes any posting more than 5 days old is available only to RBN Backstage Pass™ subscribers. In addition to blog archive access, RBN Backstage Pass™ resources include Drill-Down Reports, Spotlight Reports, Spotcheck Indicators, Market Fundamentals Webcasts, Get-Togethers and more. If you have already purchased a subscription, be sure you are logged in For additional help or information, contact us at email@example.com or 888-613-8874.