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.


Carbon Tracker Analysis: ‘Renewables are Already Outcompeting Fossil Fuels’

Clean technologies are already cheaper, on average, than the incumbent …

Timeline: The Past, Present and Future of Germany’s Energiewende

The Energiewende (energy transition) is an internationally recognised …

The Sower's Way: the Path for the Future

Our paper on "The Sower's Way" has been published in the IOP …

Just 16,000 Catenary Trucks Would Use All of California’s Electricity with only 2400 to 8300 Miles of Overhead Wires

It makes sense to electrify trucks since fuel from oil, coal, and natural …

The Energy-Water Nexus  

Energy and water are inextricably linked: It takes energy to supply water, …

Peak Oil Review - Sept 19 2016

 A weekly roundup of peak oil news, including: -Quote of the week …

Naomi Klein & the Let­down of the Leap Manifesto: Energy Depletion Dismissal is Just as Bad as Climate Change Denial (part 1/3)

Climate change denial is often decried for its destructiveness. But energy …