Learning About Current Utica Shale Market

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Being a Land and Farm Real Estate Agent requires that I stay educated on the latest news in Marcellus and Utica Shale. I found a great article in today’s Pittsburgh Post Gazette about the current Utica market in Western Pennsylvania. Dry Gas in the Utica Shale Formation . One of the biggest impacts on land value is if the area has the pipeline infrastructure, to transport the gas. Since Marcellus and Utica have been so productive, the pipelines available to ship it to other markets have been the bottleneck. That has caused Appalachian producers to sell at a discount to other trading points. This is causing our gas to sell below the national benchmark at Louisiana’s Henry Hub. New pipeline projects have been announced to open the flow to the Gulf Coast. Even though the new pipeline infrastructure will relieve the immediate Marcellus and Utica regional disadvantage. However, it will drive down the national benchmark price lower and longer, by delivering a gush of cheap gas to Henry Hub.