FCS: The Big Squeeze: Canada, Ruby and Marcellus

The current U.S. production boom is rapidly driving prices to some of the lowest levels in history. The Marcellus shale revolution is spawning a multitude of pipeline expansions across the United States, including the Ruby Pipeline in the West and the Bison in the Midcontinent. These expansions, along with dozens of Northeast pipeline projects, are likely to take on incremental U.S. supply that is priced more favorably than the Canadian alternative. These projects, plus Marcellus growth and Northeast pipeline expansions, are expected to shrink net U.S. imports from Canada to less than 5.0 Bcf/d by 2015 - a staggering 30% drop. 

Platts Market Alert, The Big Squeeze: Canada, Ruby and Marcellus, offers a detailed look into the pipeline projects currently underway and the effects they will have on the Canadian and U.S. natural gas markets. In addition, the report examines Canadian production, supply and demand for the 2010 to 2015 timeframe.

As the third of five market alerts to complement the Forward Curve Suite, Platts also provides insight into the fundamental changes the U.S. gas market will experience over the next five years as flow patterns across the Northeast, West and Canada dramatically change. Most notably, Ruby pipeline will marginalize Canadian gas imports in the U.S. West, giving Rockies producers full reign over California gas demand. 

The Forward Curve Suite is a Platts report series that examines the top natural gas market issues for the 2010-15 timeframe. This market analysis package includes Forward Curve Quarterly and a five-part Market Alert series, each highlighting the impacts of a key market sector on long-term supply/demand dynamics. The Forward Curve Quarterly™ is a quarterly assessment of U.S. supply, demand and prices for the upcoming five-year term.