Unconventional gas resources changing more than markets

09/06/2010
Development of unconventional gas resources is overhauling more than markets. It's changing companies, too.The market changes become more obvious every day. Resource potential is a diminishing concern. The main driver of supply is drilling economics.Only a few years ago, the dominant assumptions were that operators had to drill feverishly just to hold production steady and that LNG imports had to expand to meet whatever demand growth occurred. Now, the main drilling pressures on any given producer are lease obligations and production expectations of investors. With North American gas prices well below energy-equivalent oil values and likely to stay there, LNG once expected to stream into ...
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