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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 $3.20 per Mcf in 2016.
Natural gas prices affect the drilling sentiment of major natural gas producers including Chesapeake Energy (CHK), Cabot Oil & Gas (COG), Devon Energy (DVN), and Southwestern Energy (SWN).
Many of these producers are also part of energy exchange-traded funds such as the Energy Select SPDR ETF (XLE). CHK, SWN, and DVN together account for 3.4% of XLE.
There’s more to learn more about the oil industry on Market Realist’s Energy and Power page.
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Chesapeake Energy Corporation
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DEVELOPMENT STAGE |
CODE : CHK |
ISIN : US1651671075 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Chesapeake Energy is a producing company based in United states of america. Chesapeake Energy develops natural gas and oil in USA. Its main asset in development is DEEP BOSSIER in USA. Chesapeake Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 83.7 billions as of today (€ 78.2 billions). Its stock quote reached its lowest recent point on March 13, 2020 at US$ 0.12, and its highest recent level on November 18, 2022 at US$ 99.94. Chesapeake Energy has 909 242 558 shares outstanding. |