Some successful in selling western gas to east this winter
✍ Scribed by Willett, Robert E.
- Book ID
- 102220298
- Publisher
- John Wiley and Sons
- Year
- 2007
- Weight
- 286 KB
- Volume
- 12
- Category
- Article
- ISSN
- 0743-5665
No coin nor oath required. For personal study only.
✦ Synopsis
n early January, an executive with a major gas I marketer was telling me that this winter his company had made good profits by taking advantage of the difference in gas prices between the East Coast and the Far West. He would not tell me how, exactly, his company made this small fortune. He would only attribute it to "ingenious" moves by his management and trading staff.
On the surface, it would appear difficult to sell gas in reserves that normally serve the West Coast to the East, because there is relatively limited pipeline capacity west-to-east. Indeed, the differentials in prices attest to this difficulty. Said David W. Wilson, principal in the Houston office of the "Big Six" accounting firm of Coopers and Lybrand, "There wasn't enough westto-east capacity to allow a very effective arbitrage with a lot people bidding up Midcontinent price and the western prices to move that gas.