Natural Gas Marketing for Small Producers

Thomas E. Riley

The past several years have brought major changes in the way producers market their natural gas supplies. Producers are taking a much more active role in the market strategy for their product.

The oversupply and curtailments of the early 1980s, as well as tremendous price instability, have brought on deregulation of the market. Producers and marketers are assuming roles in the marketplace that previously were the sole responsibility of the pipeline and local distribution companies. Producers no longer rely on local gas companies to provide stable market pricing.

Various factors affect prices and takes for the small producer. Seasonal variations also affect takes, storage, and gathering charges.

AAPG Search and Discovery Article #91031©1988 AAPG Eastern Section, Charleston, West Virginia, 13-16 September 1988.