Growth in Marcellus production is displacing supply into the Northeast from all other producing areas.
Dissecting Natural Gas Supply & Demand™ reveals that U.S. natural gas production in 2011 increased 7.5% over 2010 or 4.3 Bcf/d – the largest year-on-year increase over the last quarter century. However, in February 2012, production in every region of the U.S. was either flat or declining expect for the Northeast. Lower volumes of dry gas production are being offset by increasing volumes of wet and associated gas, effectively shifting the geography of production growth.
Dissecting Natural Gas Supply & Demand provides a comprehensive explanation of how flows in the Northeast have a direct impact on flows to other regions of the U.S. This Market Alert draws on historical and current Cell Model™ data to assess the market implications of production, flow, demand and price dynamics.
This Market Alert also includes dynamic graphs and charts that allow you to click through to an Analytical Storyboard™, where you can watch these market developments unfold over time.