President Obama highlighted the issue last night in the State of the Union address, so it is curious to see the report this morning that the amount of natural gas projected in the Marcellus Shale has been adjusted.
Meanwhile, there’s a story on NPR this morning stating that the spread of hydraulic fracturing has been so wide that it has basically saturated the market.
A market perspective on Cabot Oil & Gas efforts to continue production during the 10-year low for price of natural gas while competitors are scaling back appeared on the Bloomberg website yesterday. Note that the price for natural gas right now is $2.53/million BTU’s, and panelists at the Duke forum January 9th agreed that the minimum price to recover costs from developing a well is around $6.50/million BTU’s.
There is certainly a curious mix of drilling proliferation causing a shift in prices, which in turn is causing a slow down in well development, yet a simultaneous push to open new areas and quashing of any requests to slow down in order to develop safer techniques and regulations.