Capital from private investors and banks is leaving (or rather, not entering) the Marcellus/Utica region and is, instead, heading to the Gulf Coast–in particular, capital investment is heading to the Haynesville Shale in Louisiana and East Texas. That was the observation of several speakers at the recent Hart Energy America’s Natural Gas conference. According to Kevin Little, senior vice president for natural gas at Macquarie Energy, the lack of pipelines and infrastructure in the M-U is not just keeping the gas in the region, the lack of pipelines is keeping investment (for more drilling) out. Here is the real tragedy: “U.S. LNG export capacity is primed to ramp up and the largest, most economic natural gas basin [the M-U] is left out of the action, unable to increase production to meet the higher demand.”
Capital from private investors and banks is leaving (or rather, not entering) the Marcellus/Utica region and is, instead, heading to the Gulf Coast–in particular, capital investment is heading to the Haynesville Shale in Louisiana and East Texas. That was the observation of several speakers at the recent Hart Energy America’s Natural Gas conference. According to Kevin Little, senior vice president for natural gas at Macquarie Energy, the lack of pipelines and infrastructure in the M-U is not just keeping the gas in the region, the lack of pipelines is keeping investment (for more drilling) out. Here is the real tragedy: “U.S. LNG export capacity is primed to ramp up and the largest, most economic natural gas basin [the M-U] is left out of the action, unable to increase production to meet the higher demand.”