Southwestern Energy Co. is producing about 400 MMcf/d in the Marcellus Shale and doesn’t foresee any constraints in moving natural gas to markets north or south for the next couple of years, executives said Friday.
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Marcellus, Eagle Ford Drilling Expected Up in 2011
Onshore natural gas plays that are able to generate profits even when gas prices are below $4/Mcf, including the Marcellus Shale, should see rig activity up by 18% in 2011 over this year, according to analysts with Raymond James & Associates Inc.
Market Experts Foresee Large Storage Injections, Lower Fall Prices
Gas market experts are expecting a large gas storage injection for the week ending Sept. 5. Although storage injections have averaged 68 Bcf for the same week over the last five years and last week’s injection was only 70 Bcf, gas futures analyst Kyle Cooper of Citigroup is forecasting a 100 Bcf weekly number from the Energy Information Administration (EIA) this Thursday, and energy consultant Stephen Smith said he’s expecting a 95 Bcf weekly build.
EIA Doesn’t Foresee Below-$3 Gas This Year
Given the higher production levels and moderate summer temperatures (at least until last week), spot natural gas prices are likely to hover around $3/Mcf for the rest of the third quarter and rise later in the year, said the Energy Information Administration (EIA) last week in its Short-Term Energy Outlook for August.
EIA Doesn’t Foresee Below-$3 Gas This Year
Given the higher production levels and moderate summer temperatures (at least until now), spot natural gas prices are likely to hover around $3/Mcf for the remainder of the third quarter and increase moderately later in the year, said the Energy Information Administration (EIA) in its Short-Term Energy Outlook for August.