Heart of America’s Shale Gas Faces Price Drop Amid Glut: ChartBy
This summer’s rally in U.S. natural gas prices has eluded the Northeast, home to the Marcellus formation, America’s biggest shale reservoir of the fuel. While production from the region has slowed and more pipelines have been built to transport gas from the Marcellus to other markets, a supply glut has lingered, depressing prices at Pennsylvania’s Dominion South hub relative to the benchmark Henry Hub in Louisiana. Even as output drops, “it is likely that the Northeast market will be oversupplied” this fall, said Andrew Weissman, chief executive officer of energy analysis company EBW AnalyticsGroup.
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