“It is a good harbinger of supply declines potentially in the future,” said Wood Mackenzie’s Eugene Kim. It said the number of natural gas exploration rigs in its most recent weekly count fell by 16 - the most in 7 years - to 141 rigs. That’s reflected in data from Baker Hughes, which builds and services drilling equipment. “They’re deciding to lay down some rigs and to produce less,” Rousseau said. And the projected price isn’t set to crack $4 until December of next year. “If you’re a producer, you’re saying, ‘Well, what can I sell my gas for?’”Ī year ago, sellers could get $8 per unit, but prices have dropped to around $2.33 for natural gas to be delivered next month. “There are companies that are willing to buy or sell oil or gas in the future at a certain price,” he said. To get an idea of what energy producers are thinking right now, one place to look is what’s known as “the forward curve,” said Jacques Rousseau of ClearView Energy Partners. The fossil fuel is used for heating and to produce electricity, among other things.īut there are some signs that a slowdown might be on the horizon. the world’s leading producer of natural gas. ![]() The shale revolution which started 15 years ago has helped make the U.S.
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