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American Oil & Gas Reporter Guest Article: Drivers Permanently Altering Way U.S. Market Functions In Post-Shale Play Era
Andrew D. Weissman
WASHINGTON–The North American natural gas market is in the midst of a far-reaching transformation. The electricity, natural gas and coal markets are converging into a single, tightly integrated market in which each commodity sets prices for the others. This paradigm shift has been triggered by the upstream industry’s success in shale plays–potentially the most important disruptive technology since the information technology and telecom revolution of the 1990s.
The industry’s ingenuity and competitive drive have created an historic opportunity to reinvigorate the U.S. economy and greatly strengthen the nation’s global geopolitical position.
During the past year, however, the producing industry has seen prices for natural gas drop to multiyear lows. While a modest rebound has occurred, the future price trajectory remains uncertain.
Excerpted from American Oil & Gas Reporter, October 19, 2012. To view full article, click the PDF link below.