****Natural Gas drilling is way down, ****
There is a glut of Nat gas on the market. The price is very low, so no need to drill till the price rises.
yep, the price of gas is so low right now that it’s cheaper to just burn it off than to transport it.
The whole sky in parts of west Texas was lit up with the fires of rigs burning off gas two weeks ago when I went to check on my holdings out there.
I suspect that rising demand, combined with the fast production decline curves, combined with fallen number of rigs after gas, and also combined with the need to first tie wells into pipelines to gas treatment plants prior to reaching the market is going to bring us back to significantly higher prices before we ride the roller coaster down again.
The political pressure to block export leaves too many unwilling to invest in more Natural Gas supply, fearing even greater overrunning of demand at profitable prices.
Muchof the new natural gas supply is from shale or other tight formations. These are far more expensive wells to complete than those common a decade or two in the past.