In an interesting coincidence, we spotted two different stories on the same day about the price of gas in the Marcellus Shale–detailing how prices this year are much higher than they were last year at this same time, and speculating that the perhaps we have finally turned a corner and our prices (compared with the benchmark Henry Hub price) will stay higher. Which is good news for both drillers and landowners who get royalty checks from those drillers. Why are northeast gas prices higher today and staying higher? In a word, pipelines. With Rover Pipeline now online and the final laterals that feed it going online soon, with NEXUS coming online by the end of this year (both of those projects carting gas to the Midwest and Canada), and with Atlantic Sunrise and other pipelines coming online to cart gas to the south, even as far as the Gulf Coast, Marcellus/Utica molecules are finding new homes in higher-paying markets. As Martha Stewart says, “That’s a good thing!”…
In an interesting coincidence, we spotted two different stories on the same day about the price of gas in the Marcellus Shale–detailing how prices this year are much higher than they were last year at this same time, and speculating that the perhaps we have finally turned a corner and our prices (compared with the benchmark Henry Hub price) will stay higher. Which is good news for both drillers and landowners who get royalty checks from those drillers. Why are northeast gas prices higher today and staying higher? In a word, pipelines. With Rover Pipeline now online and the final laterals that feed it going online soon, with NEXUS coming online by the end of this year (both of those projects carting gas to the Midwest and Canada), and with Atlantic Sunrise and other pipelines coming online to cart gas to the south, even as far as the Gulf Coast, Marcellus/Utica molecules are finding new homes in higher-paying markets. As Martha Stewart says, “That’s a good thing!”…