Natural gas demand is increasing and its supply is being held captive because environmentalists and politicians do not want to allow their residents to have access to low cost and plentiful natural gas supposedly due to climate change
As Natural Gas Demand Increases, Pipeline Approvals Remain Stagnant
Natural gas is being shipped by truck out of the Marcellus basin in Pennsylvania due to a shortage of natural gas pipelines. While it is cheaper and faster to move natural gas by pipeline rather than by truck, environmentalists are fighting the construction of new pipelines. The lack of pipelines is impacting the price of natural gas, which is selling at about a 25 percent discount in the Marcellus basin compared to the Henry Hub in Louisiana due to the inaccessibility of getting the natural gas to markets. To enable the natural gas to reach demand centers in New England and New York, the Trump administration just approved shipping natural gas by rail in chilled, liquefied form. As with truck shipment, the cost is greater by rail than by pipeline. Unfortunately, some natural gas producers have had to flare their gas (burn the gas into the atmosphere) due to the lack of shipping opportunities. Stopping pipelines and using truck and rail instead means increased inefficiencies and greater impact on the environment.
