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Natural Gas Supply Chain Cost Leakage Expanding Despite Production Surge & Basis Price Erosion

Natural Gas Supply Chain Cost Leakage Expanding Despite Production Surge & Basis Price Erosion

Natural gas supply prices, and more specifically, “basis” prices, are in decline, a function of a continued surge in domestic production. This is great news for consumers. Yet, cost leakage in the natural gas supply chain is on the increase. Why? Because cost leakage increases as basis prices decline.
 
Cost leakage occurs when consumers do not receive the full value of supply price erosion. The full benefit of this new value is forfeited by the consumer to energy suppliers or brokers. In essence, there is a forfeiture of savings by the energy consumer.
 
To learn more, watch the video below:
 

 
Question: Are you getting the full value of basis price erosion?
 
About Brad Foster
 
Brad is the founder of Foster LLC. He helps executives and business visionaries realize corporate objectives through customized strategies, services, and solutions designed to navigate the challenges of energy and utility cost management.
 
Mr. Foster has been providing energy expense solutions to U.S. businesses for twenty years. With a multi-dimensional understanding of a number of energy-related issues, his expertise has been utilized by manufacturers, universities, and hospitals. His know-how and experience spans a wide array of energy issues, including cost risk management, supply procurement, utility rates, demand response, cost reporting, and budgeting.
 

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