Shoulders

The Perryville Hub in North Louisiana continues to raise its profile in the Gulf Coast region on the shoulders of Midcontinent shale gas production and growing gas-fired power generation demand in the Southeast. Pipeline operators are responding with efforts to streamline trading at the location with the expectation that it will become the supply-demand crossroads for shale gas and power plants.

The Perryville Hub in North Louisiana continues to raise its profile in the Gulf Coast region on the shoulders of Midcontinent shale gas production and growing gas-fired power generation demand in the Southeast. Pipeline operators are responding with efforts to streamline trading at the location with the expectation that it will become the supply-demand crossroads for shale gas and power plants.

Cash traders shrugged their shoulders at news that Gulf of Mexico (GOM) production was being shut in and personnel were being evacuated Sunday and Monday as Hurricane Ida approached the eastern GOM. In continuing to send most of the market lower again Monday, they preferred to concentrate on moderate weather outlooks for most areas and the previous Friday’s drop of 18.7 cents by November futures.

The burden of increasing North American natural gas production may rest on the shoulders of the independents, according to first quarter earnings reports now beginning to be tallied. Although earnings were sky high, none of the leading oil and gas majors increased North American gas production in the first quarter of this year, and so far, only a handful of the larger independents eked out gas increases.