The results are reported of a study by Booz Allen and Hamilton, Inc., of how and to what magnitude producer and city gate prices will be affected by changes in the U.S. gas-transmission grid. Producer prices will rise in basins gaining greater access to premium markets and will be lower elsewhere, relative to what they would be without the additional transmission. Similarly, consumers will see lower prices in markets on the downstream end of new capacity and higher prices elsewhere. An examination of several scenarios on both the supply and demand side yielded the following conclusions: some pipeline corridors will see a significant drop in throughput as their markets gain access to alternative basins and some basins such as the Gulf Coast will continue long-term trends of declining deliverability; competition among pipelines in underutilized corridors will lead to discounted transportation prices substantially below regulated rates; and buyers and sellers will have a wide range of basin and market options from which to choose, to the benefit of both.

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  • Corporate Authors:

    PennWell Publishing Company

    1421 South Sheridan, P.O. Box 1260
    Tulsa, OK  United States  74101
  • Authors:
    • Johnson Jr, E
    • Viscio, A J
  • Publication Date: 1991-11-4

Media Info

  • Features: Figures; Tables;
  • Pagination: p. 78-81
  • Serial:
    • Oil and Gas Journal
    • Volume: 89
    • Issue Number: 44
    • Publisher: PennWell Publishing Company
    • ISSN: 0030-1388

Subject/Index Terms

Filing Info

  • Accession Number: 00616507
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Nov 30 1992 12:00AM