RJA: US natural gas production continues downward trend

By OGJ editors

HOUSTON, Aug. 10 -- US gas production during the second quarter showed a 3.8% decline compared with second quarter of last year, according to Raymond James & Associates Inc. based on a survey of 47 publicly traded US oil and natural gas exploration and production companies.

The St. Petersburg, Fla.-based analyst said that US gas production has reached a "similar crossroads" to that of declines seen in US oil production during the 1970s. This decline occurred "regardless of how many rigs were drilling," RJA said.

This decline is expected to continue, RJA noted, "despite continued growth in drilling activity."

The analyst forecast, "Given the inherent rate of decline in US gas wells today, combined with what is still a muted response to drilling activity, we expect domestic gas production levels to continue trending south for the next several quarters."

Even when considering private E&P firms, RJA noted, ". . .it is clear that growth in gas rigs among companies outside our survey has substantially lagged the independents included in the survey over the past 12 months."

Regarding gas prices, RJA said that, "While short-term gas prices and oil-gas price ratios should continue to be volatile, if oil prices remain near the $40/bbl level, that would imply fair value for gas above $7/Mcf."

Related Articles

Sinopec reveals Fuling field production capacity goals

03/25/2014 Sinopec plans to develop Fuling shale gas field in southwestern China to a production capacity of 10 billion cu m (bcm)/year by 2017, the company s...

IEA: Global oil demand revised upward on stronger data

03/24/2014 Global oil demand in 2013 rose by 1.3 million b/d year-over-year to 91.3 million b/d, according to the latest, near-complete set of demand data for...

Santos brings Peluang gas development on stream

03/24/2014

Santos Ltd., Adelaide, has started natural gas production from its Peluang development offshore the Indonesian island of Java.

Cenovus gets AER approval for Grand Rapids oil sands project

03/21/2014 Cenovus Energy Inc. reported that it has received approval from the Alberta Energy Regulator (AER) for its wholly owned Grand Rapids thermal oil sa...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected