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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 $3.20 per Mcf in 2016.
Natural gas prices affect the drilling sentiment of major natural gas producers including Chesapeake Energy (CHK), Cabot Oil & Gas (COG), Devon Energy (DVN), and Southwestern Energy (SWN).
Many of these producers are also part of energy exchange-traded funds such as the Energy Select SPDR ETF (XLE). CHK, SWN, and DVN together account for 3.4% of XLE.
There’s more to learn more about the oil industry on Market Realist’s Energy and Power page.
Browse this series on Market Realist:
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Devon Energy Corporation
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CODE : DVN |
ISIN : US25179M1036 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Devon Energy est une société de production minière et de pétrole basée aux Etats-Unis D'Amerique. Devon Energy détient divers projets d'exploration au Canada. Son principal projet en exploration est JACKFISH OIL SANDS PROJECT au Canada. Devon Energy est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 27,6 milliards US$ (25,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 18 août 1995 à 10,00 US$, et son plus haut niveau récent le 22 février 2008 à 99,19 US$. Devon Energy possède 525 000 000 actions en circulation. |