Friday, October 11, 2013

EIA Finds Booming Production Makes Marcellus Gas America's Cheapest

EIA documents that America's cheapest natural gas is now produced in the Marcellus region. Booming production means that natural gas in Marcellus region costs less than at Louisiana's Henry Hub.

The Marcellus region is now producing 12 billion cubic feet per day or nearly 18% of the country's gas.  All that gas is pushing the Marcellus regional price downward.

EIA projects the Marcellus price will be 20 to 40 cents per thousand cubic feet lower than the Henry Hub. Or, to put it another way, Marcellus gas will typically be 10% to 20% lower than Henry Hub gas. That's an important difference.

The booming production in the Marcellus region makes it imperative to use the best technology to limit impacts and emissions in local areas where the gas is produced.

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