Got Pipe? Forward-Looking Basis Differentials, And Getting Production To Market

Some unconventional resources are ready to produce yet are awaiting gathering and big pipe. What are the current take-away capacities by play? And, what are the forecasted basis differentials? Is stranded unconventional gas possible? Will it shut in conventional resources?

Billions of dollars are being invested to connect new production, and the Southeast U.S. supply area is complex, with SE/Gulf supply growing from the ArkLaTex shale plays: Barnett, Woodford, Fayetteville and Haynesville.

There is a Southeastern U.S. supply bubble. No pipeline supplies to the Southeast and moves north. Gas is being moved from west to east inside a bubble. SE/Gulf pipelines could be full within a year.

Burgeoning supplies are overwhelming U.S. pipeline capacity, driving prices even lower. Basis differentials will decrease in the Rockies and Midcontinent. There will be constraint problems where production overwhelms infrastructure.

Featuring:

• Tom Sherman, Senior Energy Analyst, Bentek Energy LLC

Total Length: 00:19:23

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