Appalachian natural gas producers and marketers are adapting to a new status quo — a world where new pipeline takeaway capacity out of the Northeast is hard to come by and is more or less capped ad infinitum. Without the assurance of pipeline expansions, regional gas producers are no longer drilling with abandon in hopes that the capacity will eventually get built. Instead, producers are practicing restraint by slowing drilling activity, delaying completions and choking back producing wells to manage their inventory during periods of lower demand and prices. In today’s RBN blog, we consider what this new playbook will mean for pricing trends in the supply basin.
We Can Work It Out – Appalachia Gas Basis Outlook in a Pipeline-Constrained World
