Financial Times
Surging shale output shakes up US gas

Tuesday, October 08, 2013

The US natural gas market will be turned “upside down” in the next decade as surging shale production inverts the map of supply and demand, according to a leading research group.

The northeast, traditionally the biggest gas consumer, will become a net supplier to other regions in a dramatic reversal of pipeline flows, Bentek Energy said in a new long-term market outlook.

The shift could generate new opportunities for physical gas traders such as BP, Royal Dutch Shell, Macquarie and EDF Trading.

It could also invigorate markets in “basis,” the price difference between benchmark futures and local hubs.
Gas analysts have traditionally mapped the US into the “producing region” of hydrocarbon-rich southern states such as Texas and Louisiana and two consuming regions in the east and west.

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