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!  

Start your own projects. See our RESOURCES page.
Make connections via our GROUPS 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.


Richard Heinberg on Our Renewable Future

Richard Heinberg discusses our renewable future and how to get there.

Peak Oil Review - Mar 2

A weekly roundup of peak oil news, including: -Oil and the global economy …

Oil Prices Don’t Change Because of Rig Count

Oil prices don’t change based on weekly rig count reports. Yet every …

Energy policy - Mar 1

Syriza: another energy is possible / Renewable energy grab in the Sahara? / …

The Great Game in the Holy Land

Guess what? Almost all the current wars, uprisings, and other conflicts in …

North Dakota Considers Weakening Standards on Radioactive Drilling Waste as Oil Prices Collapse

As the collapse of oil prices threatens North Dakota's shale drilling rush, …

Peak Oil Notes - Feb 26

A mid-week update. Oil prices fell on Monday and Tuesday this week on …