BENTEK Top Stories

10/10/2012–
Supply/Demand Balance Analytic Report

Haynesville and Anadarko Drive Production Decline

Dry production is down 0.4 Bcf/d due to a 125 MMcf drop in Haynesville output, a 92 MMcf decline in PA-Northeast Dry output, and a 147 MMcf drop in the Anadarko.  Smaller declines were spread across the Fayetteville and Louisiana Offshore.  Up to 50 MMcf of the Haynesville drop is likely to be revised upward based on recent activity.  At least a portion of the PA-Northeast Dry decline is also likely to return in the I2 cycle nominations.  Weather continues to chop around near the most moderate parts of the power demand curve, keeping total U.S. demand flat at 61.4 Bcf/d.  The November NYMEX contract does not reflect this moderation, however, and continues to rally, hitting $3.52 this morning and putting the spread versus the spot market wider than $0.25.