November 2015, Vol. 242, No. 11


Natural Gas Market Dynamics in the Northeast

Natural gas markets have gone topsy-turvy. Until recently, prices around the country were generally pretty similar, with gas costing a bit more in the Northeast, far from where it was produced on the Gulf of Mexico coast. But that reality has changed dramatically in the last few years. Flipping the historical dynamic, a deluge of gas produced in the Marcellus Shale region – responsible for over 20% of national production as of late spring, up from virtually zero in 2010 – has made gas prices in its backyard (western Pennsylvania and its environs) much cheaper than in some other parts of the country, such as the Midwest, Far West and Mid-Atlantic. The other repercussion of expl

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