15-20% Inflation Hits M-U Gas Drillers, Profits Remain High So Far
According to a survey of both oil and natural gas drillers, inflation began to drive up production costs during the first quarter of 2022. According to Coterra Energy Inc. President and CEO Thomas Jorden, "We are seeing significant inflation in the oilfield." Coterra is the former Cabot Oil & Gas which drills for natural gas in northeastern PA, in addition to drilling for oil in the Permian and Midcontinent. Southwestern Energy drills for natgas in both the Marcellus/Utica and in the Haynesville. Southwestern COO Clayton Carrell says he is seeing higher prices for labor and materials in both the M-U and the Haynesville. However, high inflation also benefits drillers. How?
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