The low commodity price of natural gas, due in part to the large supply created by Marcellus Shale gas, is resulting in lower monthly utility bills for customers in Berks County, PA, in an area not even part of the Marcellus Shale play.
The decision by Chesapeake Energy and other drillers to reduce drilling in dry gas (methane only) areas and instead concentrate on wet gas (natural gas liquids) areas is already having an impact on Pennsylvania’s northeastern counties where drilling last year was extremely active. Rig counts are going down, and with them, the amount of drilling [...]
According to David Sterman, a 20-year investment analyst writing on the Seeking Alpha website, the commodity price for natural gas has likely bottomed out in the U.S. and will now slowly rebound. Natural gas is currently trading around $2.45 per thousand cubic feet (mcf). Goldman Sachs believes by the end of this year prices should [...]
The talk coming from the largest drillers in the Marcellus Shale is that they will scale back drilling activities in the dry (methane only) portions of the Marcellus Shale play and instead focus on the wet (liquids-rich) portion. Ever wonder where, exactly, the liquids-rich area can be found? We now know where it is for [...]
Yesterday, the U.S. Energy Information Association (EIA) issued the 2012 Annual Energy Outlook (AEO2012) Early Release Reference case, which provides updated projections for U.S. energy markets through 2035 (a copy is embedded below). This Early Release Overview assumes no changes in current laws and regulations and is the prelude to the full AEO due out [...]
Yesterday, MDN told you about Chesapeake Energy’s major announcement that they will reduce capital spending on dry natural gas, or methane-only production, by 70 percent this year (see this MDN story). Chesapeake is also shutting down 9 percent of their domestic production, some 0.5 billion cubic feet of natural gas per day, which represents 1.5 [...]
Jack Barnes, writing for Money Morning, analyzes the price of natural gas and why it’s so low—and what it ultimately means. He says that numerous shale plays in the U.S. do contribute to an overabundance of supply. But the real culprit, according to Barnes, is that major drillers are going after natural gas liquids (NGL), [...]
Even though there is no fracking of natural gas wells in New Jersey, residents of that state are enjoying much lower heating bills this winter because of fracking. In fact, according to the AARP, using natural gas for heating costs about one-fifth of what it costs using oil. Why? The Marcellus Shale.
Kent Moors, writing on the Seeking Alpha website, comments on his observation from Baker Hughes well rig data for the U.S. that the number of rigs used to drill for natural gas has gone down over the same period last year, but that the number of rigs drilling for oil has skyrocketed.
Jack Kelly had an excellent column in Sunday’s Pittsburgh Post-Gazette. It starts out with a brief history of the discovery of oil in the U.S. and moves to shale gas and points out that shale gas is an even bigger game changer than oil was. Did you know that natural gas is now the cheapest [...]
One of the arguments in favor of shale gas drilling is that it will create more supply leading to lower prices for consumers (that’s Economics 101 for the Occupy economic illiterates). Those opposed to drilling scoff and say it won’t happen, that the big, bad energy companies will rig the system to keep prices, and [...]
Dave McCurdy is president and CEO of the American Gas Association. He’s also a former congressman (Democrat) from Oklahoma. In an interview with the Washington Times, he minces no words and says what MDN has been saying all along: Those opposed to shale gas drilling are motivated by an ideology, a preference for renewable energy. [...]
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