Platts: Marcellus/Utica has Too Much Pipeline Capacity

Luke Jackson – Platts

The LDC Gas Forum Northeast conference in Boston began yesterday and goes through tomorrow. One of the speakers yesterday was Luke Jackson, a Platts Analytics senior energy analyst. MDN editor Jim Willis heard Luke a couple of years ago at Platts’ Benposium event (see Jim’s Notebook: Benposium East Predicts Future for Oil/NatGas). Smart guy. Last year we posted analysis by Luke which said drillers will have to hurry up and drill more in order to fill up the pipelines that would soon be going online (see Platts: M-U Drillers Need to Double Rigs to Fill Pipelines in ’17). Luke returned to his theme of “not enough gas to flow through all those new pipelines” in his talk yesterday at LDC Gas Forum. Luke said there’s a growing gap between how much is getting produced and the amount of pipeline space to cart it away. He said that gap may grow to be an excess capacity of 10 billion cubic feet per day (Bcf/d) by late 2019. Ouch! Let’s get drillin’! Also talking yesterday was Meera Bagati, manager of market analysis for NextEra Energy Resources, who addressed LNG exports and how exports may affect the Marcellus/Utica region…

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