Lack of Pipelines Drives Boston Winter NatGas Contracts to $40+

New England's gas supply is precarious and has been for years. The region eliminated all of its coal-fired power plants and now relies on natural gas-fired power plants for much of its electricity generation (and oil when the natgas runs low). Yet the region and its governors, along with New York's governors, block any and all new natural gas pipeline projects from the Pennsylvania Marcellus just a few hundred miles away. New England wants and needs the gas, yet they block the mechanism that will deliver it. Just another day in a socialist paradise. So what happens is predictable: When there is a supply disruption or a tick up in demand (like a cold winter), and supplies run short, prices go through the roof. Looking ahead to December and January, the NYMEX futures contracts are doing that right now, with prices exceeding a whopping $40/MMBtu.

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