9 of 10 Biggest Marc/Utica Drillers Increase Production in 1Q16

Achilles_heel

Statue of Achilleas thniskon (Dying Achilles) at the Corfu Achilleion.

Although we often read of drillers in the northeast curtailing (shutting in) production to wait for higher natural gas prices, nine of the top ten publicly traded drillers in the Marcellus/Utica produced MORE natgas in the first quarter of 2016 than they did in the first quarter of 2015. Some of them, like Gulfport and Rice Energy, produced a LOT more (up 63% and 53% respectively). However, the Achilles heel for some drillers in our region is lack of pipeline capacity to get their gas out of the immediate region. The winners in the Marcellus/Utica are those drillers who have locked in pipeline capacity to move their gas to other regions–the northeast, south, Midwest and Gulf Coast. The losers are those who haven’t–and (potentially) those who were relying on pipeline projects that are either dead or delayed–including the Constitution and Northeast Energy Direct…

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