| Drilling efficiency and natural gas production | |
| | |
|
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 $3.20 per Mcf in 2016.
Natural gas prices affect the drilling sentiment of major natural gas producers including Chesapeake Energy (CHK), Cabot Oil & Gas (COG), Devon Energy (DVN), and Southwestern Energy (SWN).
Many of these producers are also part of energy exchange-traded funds such as the Energy Select SPDR ETF (XLE). CHK, SWN, and DVN together account for 3.4% of XLE.
There’s more to learn more about the oil industry on Market Realist’s Energy and Power page.
Browse this series on Market Realist:
|
|
|
Cabot Oil & Gas Corporation
|
|
|
CODE : COG |
ISIN : US1270971039 |
|
| |
ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Cabot Oil & Gas est une société d’exploration minière de pétrole basée aux Etats-Unis D'Amerique. Cabot Oil & Gas est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 10,2 milliards US$ (9,0 milliards €). La valeur de son action a atteint son plus bas niveau récent le 26 mars 2004 à 10,00 US$, et son plus haut niveau récent le 14 janvier 2022 à 22,20 US$. Cabot Oil & Gas possède 460 786 236 actions en circulation. |