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As crude oil price recovers, could the US rig count plateau? (Part 11 of 11) (Continued from Part 10) Drilling efficiency
In the previous post, we learned about two important factors affecting US natural production and production per rig. In this article, we’ll discuss a third factor—drilling efficiency. Drilling efficiency plays a major role in determining natural gas production growth.
Natural gas production per rig has increased most in the Marcellus, Utica, and the Haynesville shales over the past eight years. Were the number of gas-targeted rigs to actually start to rise, natural gas prices could come under even more pressure.
Natural gas price to fall
According to research firm Sterne Agee, continued supply growth amid weak demand will take the Henry Hub benchmark natural gas price to $2.70 per Mcf (thousand cubic feet) in 2015 and $3.20 per Mcf in 2016.
Natural gas prices affect the drilling sentiment of major natural gas producers including Chesapeake Energy (CHK), Cabot Oil & Gas (COG), Devon Energy (DVN), and Southwestern Energy (SWN).
Many of these producers are also part of energy exchange-traded funds such as the Energy Select SPDR ETF (XLE). CHK, SWN, and DVN together account for 3.4% of XLE.
There’s more to learn more about the oil industry on Market Realist’s Energy and Power page.
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Devon Energy Corporation
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CODE : DVN |
ISIN : US25179M1036 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Devon Energy is a and oil producing company based in United states of america. Devon Energy holds various exploration projects in Canada. Its main exploration property is JACKFISH OIL SANDS PROJECT in Canada. Devon Energy is listed in United States of America. Its market capitalisation is US$ 26.3 billions as of today (€ 23.1 billions). Its stock quote reached its lowest recent point on August 18, 1995 at US$ 10.00, and its highest recent level on February 22, 2008 at US$ 99.19. Devon Energy has 525 000 000 shares outstanding. |