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New markets would help supply glut, pipeline oversupply

Saturday, January 30, 2016 by

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The continuing supply glut and low energy prices are making producers look for new customers. Pittsburgh Tribune-Review reports that the Marcellus and Utica shale boom was too much for demand and existing pipeline infrastructure.

The solution? New markets, according to some analysts and industry experts. Producers and midstream companies would need to collaborate on projects that would serve both American and foreign markets. If one of the petrochemical projects proposed in the Marcellus and Utica regions comes to fruition, a lot of the ethane produced will be consumed.

According to the newspaper, drilling could increase in the Marcellus and Utica shales because production costs are low, even though prices have not risen.

Via: Pittsburgh Tribune-Review > Natural gas producers, processors seek new markets

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