{"id":50521,"date":"2020-01-11T20:49:10","date_gmt":"2020-01-12T01:49:10","guid":{"rendered":"https:\/\/olduvai.ca\/?p=50521"},"modified":"2020-01-11T20:49:15","modified_gmt":"2020-01-12T01:49:15","slug":"low-gas-prices-crush-appalachia-shale-boom","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=50521","title":{"rendered":"Low Gas Prices Crush Appalachia Shale Boom"},"content":{"rendered":"\n

Low Gas Prices Crush Appalachia Shale Boom<\/a><\/h3>\n\n\n\n
\"Marcellus<\/figure>\n\n\n\n

Low natural gas prices have finally brought the decade-long shale gas boom in Appalachia to a halt.close<\/p>\n\n\n\n

Gas production in Appalachia declined by about 1 billion cubic feet per day (Bcf\/d) over the past 30 days, bringing output down to an average of 32.7 Bcf\/d, according to S&P Global Platts Analytics<\/a>. That helped drag down overall U.S. gas production to 91.8 Bcf\/d, a 1.7 percent decline from 93.4 Bcf\/d in November.<\/p>\n\n\n\n

The Permian hogs a lot of attention in the press, but the Marcellus shale has been growing at a blistering rate for about a decade. That is now coming to an end as the shale gas industry struggles with oversupply and low prices, lack of profits<\/a>, debt, investor skepticism and also competition from associated gas in the Permian.<\/p>\n\n\n\n

\"\"\/<\/a><\/figure>\n\n\n\n

Natural gas prices fell sharply last year, ending the year down<\/a> more than 25 percent. The rig count in the Marcellus fell by 1 last week, dropping the total to 40. Eight months ago there were 65 rigs operating in the area.<\/p>\n\n\n\n

Front-month gas contracts are trading at about $2.12\/MMBtu, although at the wellhead prices can be much weaker. S&P said that prices at Dominion South, a hub in the Marcellus, have averaged just $1.78\/MMBtu in the past month. S&P says that average breakeven prices are $1.80\/MMBtu, but that likely understates the price level that drillers need, given the struggles that many have gone through. Related: How Long Will The Oil Price Fear Premium Last?<\/a><\/strong><\/p>\n\n\n\n

\u201cGas prices are down. It has a big impact, the difference between $2.75 gas and $2.50 gas,\u201d Toby Rice, EQT\u2019s new president and CEO, told<\/a> the West Virginian legislature in December \u201cA lot of this development doesn\u2019t work as well at $2.50 gas.\u201d<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Low Gas Prices Crush Appalachia Shale Boom Low natural gas prices have finally brought the decade-long shale gas boom in Appalachia to a halt.close Gas production in Appalachia declined by about 1 billion cubic feet per day (Bcf\/d) over the past 30 days, bringing output down to an average of 32.7 Bcf\/d, according to S&P Global […]<\/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":[2,3],"tags":[28804,2030,23083,722],"class_list":["post-50521","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-appalachia-shale","tag-gas-price","tag-oil-price-com","tag-shale-gas"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50521","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=50521"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50521\/revisions"}],"predecessor-version":[{"id":50522,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50521\/revisions\/50522"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}