The collapse in drilling activity deepened in April, with permitting for oil and natural gas wells at a record low, but there are glimmers of gains so far this month, according to an analysis by Evercore ISI.
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Planned production curtailments and delayed well completions continue to grow in the Appalachian Basin as more exploration and production (E&P) companies are continuing to announce less activity in the face of Covid-19 and the corresponding slide in commodity prices.
Aggressive retrenchment in the U.S. oil patch remained the dominant theme in the latest rig numbers, with the United States dropping 57 rigs to fall to 408 during the week ended Friday (May 1), according to data from Baker Hughes Co. (BKR).
Two of Appalachia’s leading operators said Friday that they would curtail some production this shoulder season, but both are anticipating a long-awaited increase in natural gas prices later in the year.
Range Resources Maintaining NGL Differential Guidance, Says Marcus Hook Exports Fetching Premium to Mont Belvieu
Range Resources Corp. said Monday it has continued to see positive price premiums this year on natural gas liquids (NGL) exported from the Marcus Hook export terminal in Pennsylvania compared to the Mont Belvieu hub in Texas.
The sanctioning of a multi-billion dollar ethane cracker in Ohio is again likely to be delayed after the partnership behind the project said the Covid-19 pandemic has hindered the process.
Appalachian pure-play CNX Resources Corp. said Monday that it would shut-in some of its wet gas production next month in response to low prices and could ultimately defer some new wells depending on how the market recovers from the oil rout and Covid-19 pandemic.
Higher natural gas prices amid the Covid-19 pandemic may have given some unexpected breathing room to Pittsburgh-based EQT Corp., management said Thursday.
The dramatic decline in U.S. onshore activity showed no signs of letting up during the week ended Friday (April 17) as the domestic rig count plummeted another 73 rigs to fall to 529, according to the latest figures from Baker Hughes Co. (BKR).
Having already plunged by 62% year/year (y/y) in the first three months of 2020, permitting for Lower 48 oil and natural gas drilling is expected to drop further in April, according to a team of Evercore ISI analysts led by James West.