May 22, 2020 – Natural Gas World
ADVANTAGE TO APPALACHIAN DRILLERS
Appalachian Basin producers may be at an advantage as the US energy industry reels from the impact of the Covid-19 pandemic.
[NGW Magazine Volume 5, Issue 9]
By Anna Kachkova
Read the full article here: https://www.naturalgasworld.com/advantage-to-appalachian-drillers-ngw-magazine-78882
…Questions remain, however, over how lasting such a boost to gas prices would be, and how much added dry gas drilling would result from it.
“As associated gas volumes fall, we’d expect the supply-demand balance to tighten, and as that happens, gas prices would need to rise enough to justify additional volumes from the dry gas basins in order to balance the market,” an RBN Energy fundamentals analyst, Sheetal Nasta, told NGW. “Prices should be somewhat range-bound longer term, however, because increased drilling in the dry gas basins would support the overall production level,” she added. “Near-term, though, there are a lot of moving parts, in terms of how quickly and by how much production falls, how much feed gas demand for LNG exports is impacted by cargo cancellations, and where that leaves the storage surplus. We’re still carrying a large surplus in storage relative to last year and as long as that lingers, it’s likely to limit price upside.” …
