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Which natural gas pipelines are being held up exactly? The real problem is the price (i.e. excess supply and lack of storage capacity): http://www.eia.gov/dna
by rch 11y ago
Which natural gas pipelines are being held up exactly?
The real problem is the price (i.e. excess supply and lack of storage capacity):
http://www.eia.gov/dnav/ng/hist/rngwhhdd.htm http://www.eia.gov/dnav/ng/hist/rngwhhdd.htm
Natural gas has been down for a lot longer than the oil price, and even with hydraulic fracturing there hasn't been much incentive to produce or capture the gas. The deeper shales in Ohio and Pennsylvania produce other hydrocarbons along with gas, so they were seen as a better bet (up until a year or so ago anyway).
The railroads (and utilities, and really everybody) benefited more from the drilling enthusiasm of a few years ago than they ever would by holding up a pipeline.
- bpodgursky 11y agoThe interminable holdup over the Keystone pipeline does not exactly encourage new investment. You don't seriously think companies are going to waste millions planning out a new line if they have no idea when (if ever) it would be approved.
- rch 11y agoThe material being piped is already worth less than it costs to drill and produce, so there is no reason to even consider a pipeline. When gas is over $7 and oil is over $80 then there might be some interest, but it is going to be a while.