Will U.S. gas-storage centers and pipelines be overfull in coming months? Will pipelines have to turn producers away?
This isn’t an exaggeration, says Justin Carlson, senior energy analyst for Denver-based energy-research firm Bentek Energy LLC, in the webinar “The Haynesville Bottom Line: Leasing, Take-Away, Well Results.”
“Right now, we estimate that, on a daily basis, (the U.S. is) more than 2 billion cubic feet (Bcf) per day long on gas. We are building storage at 2 Bcf a day. From a pure inventory standpoint, we don’t have the capacity to take that much gas. We don’t have anywhere to put it. Nor do we have a demand market to absorb that gas....”
Will an improved U.S. economy deplete the excess? “At 2 Bcf long a day, I don’t think even an economic turnaround is enough demand to help absorb the excess gas we have.
“It’s (a) gas-on-demand (supply market) and we can produce it fairly quickly to meet any incremental demand from the market.”
Could this excess natural gas be exported? “Certainly that’s an option, but there are some barriers to that. There is a lot of red tape to get through.”
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