Marcellus Gas Displacing Alberta Suppliers - News and Current Events | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

Marcellus Gas Displacing Alberta Suppliers
Started:May 6th, 2014 (07:50 PM) by kbit Views / Replies:80 / 0
Last Reply:May 6th, 2014 (07:50 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Marcellus Gas Displacing Alberta Suppliers

Old May 6th, 2014, 07:50 PM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

Marcellus Gas Displacing Alberta Suppliers

For anyone covering the energy industry, it is often wise to take most production forecasts with a healthy dose of skepticism. The Marcellus shale gas production growth has turned out to be an exception to this rule. This 104,000-square-mile play, which covers parts of New York, Pennsylvania, Ohio and West Virginia, has been an overwhelming success, producing 14 billion cubic feet per day (bcf/d). Back in 2007, the Marcellus was only producing a paltry 1.2 bcf/d.

This newfound supply is shaking up markets and squeezing out some longstanding natural gas suppliers, particularly Alberta. Eastern Canada has traditionally received the majority of its natural gas from Alberta and the Western Canadian Sedimentary Basin. Since the late 1950s, Alberta’s prolific fields have had a competitive advantage in sending natural gas east to the densely populated and energy hungry provinces of Ontario and Quebec. Many analysts believe that this market advantage is over. Enbridge reports that it is now sending roughly 400,000 mcf/d of Marcellus gas to Eastern Canada. TransCanada is also sending Marcellus gas to eastern Canada through their Canadian Mainline. The Alberta Energy Regulator notes that mainline shipments from the Alberta-Saskatchewan border to Ontario have dropped by four bcf/d since 2006.

Another reason why Marcellus gas has been able to displace Alberta gas is the growth in oil sands production. The fastest growing form of production within the oil sands is the In Situ process. This process requires large amounts of natural gas. Today, about one million barrels of oil are produced by this method, but the Canadian Association of Petroleum Producers (CAPP) predicts that In Situ production will rise to two million barrels per day by 2020.

The result of these two market forces has been favorable to Marcellus producers seeking new markets. Eastern Canada also has a resource that is lacking in other markets: Pipeline capacity. The northeastern United States, with a population of roughly 57 million, has a large demand for natural gas, but very limited pipeline capacity. Existing pipeline infrastructure failed to keep up with demand over the past winter. In January at the Algonquin Citygate trading point in Massachusetts, prices rose from normal levels of $3-$6/MMBtu during uncongested periods to $38.09/MMBtu during peak demand.

Looking forward, it seems Marcellus gas will continue to grow in Eastern Canada. Spectra Energy Corp. has proposed the Nexus Gas Transmission, a 400-kilometer, $1.5 billion pipeline link that will move natural gas sourced from the Marcellus and Utica north to the Ontario market. Enbridge is also planning to start construction at the end of the year on the $680 million Greater Toronto Area pipeline, with a capacity of 800,000 million cubic feet per day (mcf/d), of which 200,000 mcf/d will be sourced from the Marcellus. As Marcellus gas production is expected to reach 20 bcf/d by 2020, producers will continue to be aggressive in accessing new markets.

By Chris Pedersen
Marcellus Gas Displacing Alberta Suppliers

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > Marcellus Gas Displacing Alberta Suppliers

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Gas Trading Help Please Dazz51 Commodities Futures Trading 17 August 1st, 2013 02:52 PM
The Scope Of The Alberta Oil Sands..... kbit News and Current Events 12 April 30th, 2012 04:31 AM
Spin overtaking facts in Marcellus Shale debate kbit News and Current Events 0 September 25th, 2011 04:00 PM
U.S. Slashes Marcellus Shale Gas Estimate By 80% kbit News and Current Events 0 August 24th, 2011 08:45 PM
Prostitutes In Alberta, Canada Are Making $15,000/Week kbit Off-Topic 0 June 27th, 2011 07:33 PM

All times are GMT -4. The time now is 06:02 PM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-28 in 0.07 seconds with 19 queries on phoenix via your IP