Oct. 8, 2013
/PRNewswire/ -- Massive shale-driven production growth in the U.S. Northeast and soaring demand from the Southeast will turn the nation's traditional south-to-north and west-to-east pipeline natural gas flows and price spreads upside down, according to
, the natural gas and oil analytics unit of
, a leading global energy and commodities information provider.
"Based on our latest modeling, the U.S. is embarking on a true sea change," said
, Bentek Energy director of energy analysis and lead author of the just-released 10-year outlook report
Son of a Beast -- Utica Triggers Regional Role Reversal
. "The Northeast is poised to switch from the nation's largest demand region to a net supply region, and the U.S. Southeast is racing to become a much larger net demand region after being a major supplier to the U.S. gas market."
The 114-page report released at Houston Platts Commodity Week, an annual energy and biofuels outlook event, says that more than one-third of the U.S. natural gas production increase from 2013 to 2023 -- or 9.1 billion cubic feet per day (Bcf/d) -- is expected to come from the Utica and Marcellus shale formations in the northeastern U.S., while nearly half of U.S. demand growth, or 9.4 Bcf/d, is expected to occur in the Southeast over the same period.
"This will contribute to making the Southeast a premium market relative to most other regions, pulling increasing amounts of gas from the Northeast,
and the Midcontinent," said
, Bentek Energy senior energy analyst and one of many speakers at Platts Commodity Week.
Bentek forecasts a 9% rise in natural gas prices by late decade at Henry Hub, a key North American hub and pricing reference.