The news story I have linked to below outlines how the natural gas price differences in the US have evened out, because of increased pipeline capacity. There are many “hubs” for natural gas around the US. Natural gas in the Rocky Mountains area was much cheaper than the NorthEast or in Louisiana, where other major gas hubs are, as there was not enough pipelines to get it out to more heavily populated markets.
But now with the new multi-billion dollar Rockies Express pipeline, which carries gas from the Colorado to Ohio, that gas can find a ready market. I wrote an earlier article how the Rockies Express had displaced 10% of all Canadian production, which you can read here – http://tinyurl.com/l2r52w. (Mainstream media did not pick up the story.)
This article in the Denver Post shows what some of the difference in gas prices used to be, and what they are now: http://tinyurl.com/yfajsmh
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Related posts:
- 2011 Outlook for Canadian Natural Gas
- 2011 Outlook for Canadian Natural Gas, Part 2
- Canadian Natural Gas Stocks: Intriguing Plays in a Divided Market
- Will the U.S. Become World’s Largest Oil Producer? The Surprising News about U.S. Oil Production
- El Paso’s Ruby natural gas pipeline placed into service




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