According to the latest Monthly Natural Gas Gross Production Report from the Energy Information Administration (EIA), natural gas production levels continued to climb in April 2011. Most notably, production in Louisiana alone has doubled in the past two years, reaching 8.15 Bcf/day in April 2011, an increase of 102% over April 2009.
Likewise, the Marcellus Shale and other regions have shown significant growth since April 2009, totaling 26.6% or 3.88 Bcf/day. The drilling activity in the Haynesville Shale in Louisiana and the Marcellus Shale in the Appalachians are largely responsible for the gains in Louisiana and other states.
In the July 2011
Natural Gas Price Outlook published by Energy Solutions, Inc., President, Valerie Wood, stated that “the combination of horizontal drilling and hydraulic fracturing technologies has made it possible to produce shale gas economically and, in most cases, at costs that are below the cost of most conventional wells. Not only that, but production costs are continuing to fall.”
Overall, natural gas production in the Lower-48 states has increased 10.6% or 6.66 Bcf/day over the past two years. Even though the drilling rig count is well below last year’s levels, there is no indication that production is slowing, much in part to the success of shale gas extraction and anemic demand due to the slow economic recovery.
Shale gas potential is huge and has dramatically changed the natural gas industry. Never before has the U.S. had the ability to produce so much natural gas so quickly and at such attractive rates. Shale gas has truly been an industry game-changer.
Natural Gas Price Outlook provides you with the tools needed to implement a cost-effective natural gas strategy for the next 24-36 months. This 50-plus page, comprehensive analysis evaluates numerous price drivers and is a must-read for those who want answers to what the future holds for natural gas prices.
Click here to learn more and secure your copy.
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About Energy Solutions, Inc.
Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 50 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.
