U.S. natural gas exploration and production (E&P) companies have reduced output in response to high inventories and the low price environment, but now the query is, when might production return? Price will tell, according to analysts. Lower 48 natural gas output has fallen below 100 Bcf/d, down from record highs around 107 Bcf/d early this…
Exploration And Production
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BP Says Upstream Output Rising, but Lower Natural Gas, Oil Realizations Adversely Impact 1Q
BP plc expects its natural gas marketing and trading results to be “strong” for the first quarter, following an upbeat result in the final three months of 2023. The London-based major, in a trading update preceding its first quarter report, said upstream production also would be higher in the period. However, lower gas and oil…
Mexico Natural Gas Imports Seen Reaching New Highs as Price Slump Persists
Amid a historic natural gas price downturn and uncertainty around the future of LNG exports, the Mexico market remains a relative bright spot for bulls. Pipeline flows of U.S. natural gas to Mexico have averaged 6.09 Bcf/d year-to-date through March 27, up 552 MMcf/d versus the same period last year, according to Wood Mackenzie data.…
Abundant Western Canadian Natural Gas Supplies Support Seismic Pacific Storage Rebound
Natural gas production in Canada proved robust through the past winter, even as heating demand waned in the back half of the season. Supplies in storage swelled and prices dropped as a result, mirroring and compounding conditions in the United States. Related U.S. challenges include elevated supplies in the Pacific region, due in part to…
Mexico Elections Pit Energy Continuity Against Return to Open Auction Era, Expert Says
Expanding the use of natural gas tapped from Mexico’s abundant reserves would help to reduce the carbon intensity throughout many areas of the economy, said Jeremy Martin, vice president of Energy & Sustainability at the Institute of Americas. During the upcoming elections, however, Mexicans will decide whether they want more of the same or a…
Jones Cowboys Up Another $100M to Gain Two-Thirds Control of Haynesville Giant Comstock
Dallas Cowboys owner Jerry Jones, already majority shareholder in Haynesville Shale pure-play Comstock Resources Inc., has agreed to invest an additional $100.5 million into the company. Two Jones entities agreed to acquire 12.5 million shares of common stock in the private placement at $8.036/share. The price represents the average closing prices for the five trading…
Natural Gas Market Contango Incentivizing Hedging, Could Keep Producers from Reining in Supply
If the future price of natural gas remains higher than the spot price, would producers be incentivized to tighten production? Market participants discussed the possibility that the contango in natural gas would keep some producers from reining in supply. NGI spot price data show that the Henry Hub natural gas price rose 16.5 cents Monday…
Haynesville Shale Adds Two Rigs as U.S. Natural Gas Drilling Count Climbs
Including an uptick in Haynesville Shale activity, the U.S. natural gas rig count increased by one to finish the week ended Friday (March 15) at 116, the latest Baker Hughes Co. (BKR) data show. The 116 active natural gas rigs as of Friday compares with 162 rigs running at this time a year ago, according…
U.S. Down Four Rigs as Activity Slows in Haynesville, BKR Data Show
Led by a pullback in Haynesville Shale activity, the U.S. natural gas rig count dropped four units to 115 for the week ended Friday (March 8), according to updated figures from Baker Hughes Co. (BKR). The 115 active U.S. natural gas rigs as of Friday compares with 153 running in the year-ago period, according to…
OPEC Cuts, Global Oil Demand Fuel Potential for Ongoing U.S. Associated Natural Gas Production
Steady global demand for crude and ongoing OPEC production reticence could motivate U.S. oil producers to keep output near record levels this year. In doing so, they could also continue to deliver robust amounts of associated natural gas from the Permian Basin, countering efforts elsewhere to curb supply in the face of low prices. The…