We are producing way more gas than takeout capicity can handle. I am aware of some recent wells that came on, all 10, 11 12 mmcf/d IP.HUGE. We suspect, much is driven by the need to HBP. Otherwise I assume completions would be way down.
Last week of those unaware, Zone 4 , TGP went to .85 under NYMEX, with NYMEX at 3.60, that is 265 and if you have no deduction protection, ~ 2$ again. The high quality of the rock under us is killing us!
From day one in this, long experienced contacts said don't worry if the gas is there, capacity will be built and it is being built -- higher pressure, additins to capacity etc, but too slow vs production growth. A guess, in less than 3 yrs the NE will be ok, but no fun on the horizon for a min of 1 yr.
I do not have data on the Transco that travels throufh central Lycoming. In teh last 2 yrs, the discounting there has not been as extreme.
Is anyone up on the Marc line, Inergy's line Camptown south through Sullivan to the Transco?
Am pretty sure the N bound portion, from Upper sullicvan to the TGP is operating.
BTW INERGY, NRGY mwerged with a good outfit with more western gathering/storage operations.
Looks like a good fit .They will be able to borrow cheaper, be more flexable in planning new lines.