Shale Gas Revolution Is Not Done Yet

Posted on Dec 2, 2015 in News

OilPrice.com, Michael McDonald, 12/2/15 –

Most of the time companies see greater productivity as a good thing. Improved asset productivity helps companies produce more output for every dollar of input which usually increases profits. But what if every company across an industry produced more output? That is exactly what is happening in the natural gas market right now, and the results are looking increasingly dire for natural gas companies.

This summer, EQT Corp drilled what might be the largest natural gas well ever in the U.S. The summertime gusher in Pennsylvania’s Green County put out enough gas in the first 24 hour to power every house in Pittsburgh for 3 days. EQT is not alone in producing such prolific wells. Several other wells near EQT’s Scotts Run 591340 well have produced similar results. EQT is so confident in the productive output of the Utica field near the Scotts Run well that it is suspending work elsewhere to focus on that area. The result is that natural gas prices will likely come under further pressure.

Full story is here.