White Papers US Gas and LNG Markets - Page 6

US Gas and LNG Markets - Continuing Challenges are Forecast A ComTechAdvisory Whitepaper MAINTAINING PROFITABILITY IN A CHANGING MARKET The US natural gas markets are the most complex in the world, with hundreds of thousands of pipeline miles, evolving areas of production, local or regional supply/takeaway imbalances and a changing demand pattern. And, with the market in an almost persistent oversupply situation, natural gas prices are near record low levels and trading margins continue to shrink. However, pockets and short periods of volatility do occur in areas where infrastructure constraints have resulted in an oversupply (such as the Permian Basin or Marcellus region) or during times of peak demand (such as Artic fronts moving through densely populated markets). Unfortunately, these events are difficult to plan for and generally increase risks for traders and producers in the affected areas. Profitably managing business for producers, traders and industrial consumers is more difficult than ever, and requires a broad market view that encompasses not only market prices but also the wide range of variables that impact natural gas supply, demand, and transmission. In this market, participants need more coordination between operations and commercial activities and better market insights to anticipate market changes and make informed decisions in order to lock-in margin or ameliorate risks. As the number of data sources, both external and internal, continue to grow, a systematic approach to identifying actionable information within the tsunami of data is required…simply relying on a singular view of the market, like provided by the information contained with your ETRM solution, is akin to looking only at your rearview mirror while driving…you only know where you’ve been and will be guessing at where you are going in the future. © Commodity Technology Advisory LLC, 2019, All Rights Reserved.