Northeast gas production – running out of steam?
Northeast gas supply growth slowed down at the end of 2018 despite record amount of new pipeline capacity coming into service. The region is constrained no more but the future of the basin is more uncertain than ever as negative sentiments around Northeast producers' precarious financial stability have been mounting since 2018. Will the new capacity build unleash production from the Marcellus and Utica as promised? Or will the explosive Northeast production growth finally come to a halt as the region craters to the pressure from competing supply such as Permian or Haynesville? In this paper, we explore all the reasons why production will not grow commensurate with incremental takeaway capacity, but growth will happen. To do so, we expand on the impact of the changing macro and regional market dynamics with corporate drivers for producers. We take a look forward to assess this new reality for future developments - what will this mean for producers and midstream companies?