After three years of exponential growth, the Marcellus Shale is showing signs of plateauing this year.
Drillers in northeastern Pennsylvania -- the dry gas area of the Marcellus Shale -- in the months ahead will stomp on the brakes with both feet and jam the dry gas freight train into reverse, according to a recent analysis by Bentek Energy LLC (see Shale Daily, Feb. 22b). Even if they do, a bulging gas surplus will fester behind pipeline capacity constraints for years to come, the firm said.
"...Northeast supply growth has outpaced capacity additions and local demand growth and led to a huge backlog of non-producing wells, exacerbating the potential for supply congestion and price weakness," Bentek said in a Market Alert. "In response, producers have announced a 14% decline in total northeastern Pennsylvania (dry gas) rig activity."
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