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.
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