{"id":48652,"date":"2019-09-25T12:04:14","date_gmt":"2019-09-25T17:04:14","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48652"},"modified":"2019-09-25T12:04:20","modified_gmt":"2019-09-25T17:04:20","slug":"too-much-too-fast-gas-glut-crushes-shale-drillers","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48652","title":{"rendered":"\u2018\u2019Too Much Too Fast\u2019\u2019 Gas Glut Crushes Shale Drillers"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/Too-Much-Too-Fast-Gas-Glut-Crushes-Shale-Drillers.html\">\u2018\u2019Too Much Too Fast\u2019\u2019 Gas Glut Crushes Shale Drillers<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/143f1686321336aab056870945888708.jpg\" alt=\"Gas Storage\"\/><\/figure>\n\n\n\n<p>Appalachian shale drillers are getting squeezed by low prices, and a supply glut may mean that there is little prospect of a pricing rebound anytime soon.<\/p>\n\n\n\n<p>Earlier this month, IHS Markit put out a&nbsp;<a href=\"https:\/\/news.ihsmarkit.com\/press-release\/energy\/us-natural-gas-price-will-fall-levels-not-seen-1970s-ihs-markit-says\" target=\"_blank\" rel=\"noreferrer noopener\">press release<\/a>&nbsp;entitled, \u201cU.S. Natural Gas Price Will Fall to Levels Not Seen Since 1970s.\u201d The firm said that persistent oversupply from the Marcellus would be \u201creinforced\u201d by a surge in associated gas production from the Permian basin. That could keep average natural gas prices below $2\/MMBtu next year, which would nominally be the lowest since 1995, but in real terms it would be the lowest since the 1970s.<\/p>\n\n\n\n<p>The market is set to see falling prices despite structural increases in demand from new gas-fired power plants and LNG export facilities. IHS noted that U.S. demand has climbed by 14 billion cubic feet per day (Bcf\/d) in annual consumption since 2017, but supply has expanded by even more than that amount since the start of 2018.<\/p>\n\n\n\n<p>\u201cIt is simply too much too fast,\u201d Sam Andrus, executive director of IHS Markit, said in a statement. \u201cDrillers are now able to increase supply faster than domestic or global markets can consume it. Before market forces can correct the imbalance, here comes a fresh surge of supply from somewhere else.\u201d<\/p>\n\n\n\n<p>The bust in gas prices create significant dangers for gas-focused shale companies. \u201cWith the news from IHS Markit that natural gas prices in the United States will drop below $2 MMBtu in 2020 and remain low through at least 2024, if not longer, heads must be exploding in the board rooms of oil and gas producers throughout the U.S. and Canada,\u201d Tom Sanzillo and Kathy Kipple wrote in a\u00a0<a rel=\"noreferrer noopener\" href=\"http:\/\/ieefa.org\/ieefa-update-low-natural-gas-prices-a-negative-outlook-for-energy-sector\/\" target=\"_blank\">commentary<\/a>\u00a0for the Institute for Energy Economics and Financial Analysis (IEEFA).\u00a0<\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u2018\u2019Too Much Too Fast\u2019\u2019 Gas Glut Crushes Shale Drillers Appalachian shale drillers are getting squeezed by low prices, and a supply glut may mean that there is little prospect of a pricing rebound anytime soon. Earlier this month, IHS Markit put out a&nbsp;press release&nbsp;entitled, \u201cU.S. Natural Gas Price Will Fall to Levels Not Seen Since [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[23083,722,764],"class_list":["post-48652","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-oil-price-com","tag-shale-gas","tag-supply-glut"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48652"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48652\/revisions"}],"predecessor-version":[{"id":48653,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48652\/revisions\/48653"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}