Building a world of
resilient communities.

MAIN LIST

 

Natural gas production falls in US despite high prices

US gas production during the second quarter showed a 3.8% decline compared with second quarter of last year, according to Raymond James & Associates Inc. based on a survey of 47 publicly traded US oil and natural gas exploration and production companies.

The St. Petersburg, Fla.-based analyst said that US gas production has reached a "similar crossroads" to that of declines seen in US oil production during the 1970s. This decline occurred "regardless of how many rigs were drilling," RJA said.

This decline is expected to continue, RJA noted, "despite continued growth in drilling activity."

The analyst forecast, "Given the inherent rate of decline in US gas wells today, combined with what is still a muted response to drilling activity, we expect domestic gas production levels to continue trending south for the next several quarters."

Even when considering private E&P firms, RJA noted, ". . .it is clear that growth in gas rigs among companies outside our survey has substantially lagged the independents included in the survey over the past 12 months."

Regarding gas prices, RJA said that, "While short-term gas prices and oil-gas price ratios should continue to be volatile, if oil prices remain near the $40/bbl level, that would imply fair value for gas above $7/Mcf."

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


BC Natural Gas Reserves Inflated, Revenues Overstated, Report Finds

Analyst David Hughes offers another challenge to the province's nascent …

Energy Crunch - Businesses wake up to climate action

This week, the Queen's speech assured us that the new government would …

Peak Oil Notes - May 28

Oil prices have fallen for three straight sessions this week closing …

Peak Oil in an Era of Fossil Fuel Abundance

Chris Nelder on why peak oil isn't dead.

Surge in Renewables Remakes California’s Energy Landscape

Thanks to favorable geography, innovative government policies, and …

BC LNG Lost Its Window of Opportunity, Study Finds

The window of opportunity to capture Asian gas markets has eluded proposed …

Peak Oil Review - May 26

A weekly review including Oil and the Global Economy, The Middle East & …