The decline in U.S. natural gas prices, combined with elevated costs to drill a well, are forecast to slow down drilling and completions (D&C) activity in the gassy basins of the Lower 48.


Rystad Energy Vice President Serik Omarov in a note said the gas price decline has created uncertainty for exploration and production (E&P) companies, particularly those developing gas reserves. Oilfield service costs for D&Cs have risen by around 30% since 2021.

“With the price plunge, the economics will not be attractive for operators to allocate capital even for top quartile basins,” Omarov said. 

Several natural gas basin operators already have said they are reducing activity. Among them are Haynesville Shale-focused Comstock Resources Inc. CEO Jay Allison last month discussed the...