Stifled

Low natural gas prices have stifled activity in the dry window of the Eagle Ford Shale in South Texas, but the play’s natural gas liquids (NGL) and crude windows “are hotbeds of activity,” according to veteran industry observer Rusty Braziel, now principal of RBN Energy.

California’s recently streamlined oil/gas drilling permits process has been achieved after warnings about the use of hydraulic fracturing (fracking) were stifled and two top state officials were fired by Gov. Jerry Brown, according to a front-page report in Sunday’s Los Angeles Times.

A plethora of natural gas shale deposits, persistently high rig counts, hedging and available debt capacity have stifled domestic natural gas prices for possibly three years, analysts at Tudor, Pickering, Holt & Co. (TPH) said last week. Tradition Energy analysts also blamed “the poor prospect of economic growth in the second half of the year” in revising down its gas price forecast.

A plethora of natural gas shale deposits, persistently high rig counts, hedging and available debt capacity have stifled domestic natural gas prices for possibly three years, analysts at Tudor, Pickering, Holt & Co. (TPH) said Tuesday.

After looking like the rally of last week was stifled by Friday’s nearly 30-cent decline, October natural gas futures showed renewed strength on Monday as the contract popped back above $3 to record a high on the day of $3.375 before closing out the regular session at $3.297, up 33.7 cents — 11% — from Friday’s finish.

Constricted and expensive capital markets have not stifled natural gas pipeline development, and analysts predict projects generally will move forward, driven by producers’ need to get gas to market and supported by investors’ appetite for “more reasonable returns and greater certainty.”

Constricted and expensive capital markets have not stifled natural gas pipeline development, and analysts predict projects generally will move forward, driven by producers’ need to get gas to market and supported by investors’ appetite for “more reasonable returns and greater certainty.”