Pipeline Capacity Challenged for Largest U.S. Shale Gas Field

Posted October 19, 2015 at 6:30am

Rigzone reports that “for the first time since America’s shale boom began, the flow of natural gas from the nation’s biggest reservoir is close to dropping below year-ago levels.”  

“Output from the Marcellus basin in Pennsylvania and West Virginia is faltering as pipeline capacity fails to keep up with the surge in production. While space on Appalachian pipelines has more than doubled this year, it hasn’t been enough to keep the flow moving freely, according to Bloomberg New Energy Finance.”  

“That has some producers ‘choking back’ the output from wells in the play, said Charles Blanchard, an analyst at BNEF in New York. ‘They’re saying it’s not even worth it day to day to keep my wells online because I’m losing money on every molecule that I sell.’”