Executive Briefings

Abundant Supply of Shale Oil Not Expected to Slow Continued Pumping

The United States has enough shale gas to supply the surge of recently announced petrochemical expansions and, despite anemic prices, producers have no plans to stop pumping as long as demand exists, a Southwestern Energy executive said Thursday.

Gas prices collapsed two years ago and while they have recovered somewhat, some drillers have turned their focus to more lucrative regions rich in oil and other liquids. But companies that specialize in natural gas production continue to produce more, spurred on by technological advances and cheaper drilling and completion costs that allow them to produce more with less.

“Looking at the rig count is no longer a good measure of production,” said Jim Tramuto, vice president of regulatory and government affairs for Southwestern, which is among the largest natural gas producers in the continental U.S. “We’re getting more productive on every well that we’re drilling.”

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Gas prices collapsed two years ago and while they have recovered somewhat, some drillers have turned their focus to more lucrative regions rich in oil and other liquids. But companies that specialize in natural gas production continue to produce more, spurred on by technological advances and cheaper drilling and completion costs that allow them to produce more with less.

“Looking at the rig count is no longer a good measure of production,” said Jim Tramuto, vice president of regulatory and government affairs for Southwestern, which is among the largest natural gas producers in the continental U.S. “We’re getting more productive on every well that we’re drilling.”

Read Full Article