M-U Production & Demand Pretty Much in Balance, Prices Remain High

Not many months ago it appeared the Marcellus/Utica was about to replay a movie we've seen before: not enough pipelines to move our gas to better-paying markets leading to a crash in the regional price for natural gas. We can't count how many years the M-U drillers bumped along getting around $1/Mcf for M-U gas, because we could not move it to better-paying markets. But the script has flipped. No, our pipeline capacity has not changed all that much, but something else *has* changed--demand for natural gas from customers in the northeast has gone up, keeping the prices our drillers receive nice and high.

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