(P&GJ) - It has gotten to be a familiar yet no less frustrating story for midstream operators in the Marcellus-Utica region: pipeline takeaway capacity remains bottlenecked and production from the gas-rich region continues to stagnate. Even at that, though, the implications of the United States cutting itself off from a gas resource that could be produced relatively cheaply may still be underestimated significantly. Most recently, the lack of shipping options has to some extent left the Marcellus high and dry, while producers in the Haynesville Basin of Northeast Texas and Louisiana, and the Permian Basin of West Texas and New Mexico, have stepped up production to meet surging demand from Europe, in the wake of the fallout from Ukraine. "We continue to see policymakers in New York and elsewhere pushing the narrative that growth in wind and solar, alone, can meet the needs of a fully electric world, including for winter heating in cold climates ... without sacrificing affordability and reliability," David Bauer, president and CEO of Diversified National Fuel Gas Co., said during a fourth quarter earnings call." The gap between aspirations and reality is remarkable."
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