Wednesday, July 25, 2012

Stunning Fact: Pennsylvania Gas Price Falls Below Louisiana's Henry Hub

I am old enough to remember the days when energy supplies were running short, especially in the Northeast. Those days were more than 30 years ago.  And at that time, some of our friends in Louisiana and Texas, that had plenty of oil and gas, liked a bumper sticker that said: "Speed and freeze a Yankee."

While the day has not yet come when us Yankees could return the favor to our friends in the South, the day has arrived where our natural gas costs less than theirs.

The Energy Information Administration reports that the decades-long spread between natural gas at the famed Henry Hub in Louisiana and the Columbia Transmission trading point in Southwest Pennsylvania has closed and even reversed.

The huge production from the Marcellus shale has put in the dustbin of history the days when Louisiana and Texas gas was consistently cheaper than gas in Pennsylvania.  Indeed, according to the EIA data, gas in Pennsylvania will be about 10 cents per thousand cubic feet cheaper than at the Henry Hub in 2013 and beyond.

While it was always tough to freeze a Rebel, and just got tougher when Georgia and South Carolina both set all time record high temperatures this summer, we would still welcome our Southern friends moving to Pennsylvania, where they now can enjoy cheaper natural gas.

1 comment:

  1. thumbs up! for this one too:)