The horizontal natural gas drilling boom drove a long production growth period, but that boom topped out in September 2011, and overall monthly production has remained basically flat since then, analysts at Stephen Smith Energy Associates said in their most recent Monthly Energy Outlook. And while the number of horizontal gas rigs has fallen about 70% from its peak, several effects have worked to maintain the 18-month production plateau, they said.
Articles from Bull
A turn toward oil and natural gas liquids (NGL) last year did a good turn for earnings at Houston-based W&T Offshore Inc. “Solid” oil and liquids production in a bull market for same lifted the company’s operating income to the highest level in its history, CEO Tracy W. Krohn told financial analysts Friday.
A steep decline in share prices, combined with uncertain oil prices, have put a bull’s eye on about two dozen large U.S. producers and close to 100 small exploration and production (E&P) companies, which may be targets for consolidation, according to a report by IHS Inc.
The drop in share prices, combined with uncertain oil prices, have put a bull’s eye on about two dozen large U.S. producers and close to 100 small exploration and production (E&P) companies, which may be targets for consolidation, according to a new report by IHS Inc.
As indicated in Tuesday’s dwindling gains and increased softness, the cash market’s recent bull run was coming to a close. This was borne out in Wednesday trading; several locations, mostly in the Northeast, were flat or higher again, but a majority of points saw generally minor declines.
The bull move in natural gas futures looked to be alive and well in Friday morning trading before the prompt-month contract came tumbling back to earth in the afternoon. After reaching a high of $8.410 in early activity, the February contract plummeted to a low of $8.095 just after noon EST before closing out the day at $8.210, down 4.9 cents from Thursday but 36.9 cents higher than the previous week’s finish.
Canadian royalty trusts in the oil and gas sector had a decade-long bull run until the Canadian government mounted a plan to strip them of their favorable tax status for distributions (see NGI, Nov. 6). The plan to tax the trusts could very well spark a movement of investment dollars southward and American exploration and production (E&P) activity northward, said David Marcell, TriStone Capital managing director, acquisitions and divestitures.