Saudi Arabia steps in to, unintentionally, support US shale

Things are looking up in Shalelandia these days. Oil prices, despite the most recent drop, have stayed close to $50 a barrel. Rig-counts and production are rising. Even Saudi Arabia is looking discombobulated. Lest we forget, though, the chief reason things are looking up is because E&P companies fell way down. Back in October, Gadfly surveyed the financial…


Fast growth, capacity on track for northeast US shale gas pipelines

A surge in pipeline capacity for natural gas in the U.S. Northeast this year and next is expected to boost profits for producers and help hold down prices for Midwest and East Coast buyers. The $13.8 billion infrastructure build-out involves seven large pipeline proposals that will take gas in all directions. Producers in the Marcellus…


Falling natural gas prices slash Marcellus shale producers’ revenue

The head of Pennsylvania’s largest shale gas producer concluded his quarterly earnings call on Friday with a dark view of the situation confronting shale drillers in the Marcellus. “I have been in this business over 30 years. I’ve seen a lot of cycles, and this is one of those draconian, down markets,” Dan Dinges, CEO…


The US shale revolution has not paid investors well

We have all heard of the “shale revolution”. It has been touted as the energy panacea of our time. Given the extreme hype, one would expect that such enthusiasm would translate into above average share performance for shale operators. This has not been the case. Share performance has actually been quite mediocre and in some…


Marcellus Shale gas production rose 28% in 2014 to record 4.4 tcf

Despite low gas prices and a reduction in drill rigs, Marcellus Shale producers generated nearly 4 trillion cubic feet of natural gas in Pennsylvania last year, up 28 percent from the previous year, according to state figures. Exploration companies produced 2.08 trillion cubic feet of gas from 5,960 shale wells during the second half of…


US shale gas drillers power on despite price plunge

US natural gas production is poised to reach a record for a fifth year as shale drillers boost efficiency, driving prices toward a low of more than a decade. Output will rise 3.2% in 2015, led by gains at the Marcellus formation, the nation’s biggest shale deposit, according to the Energy Information Administration. Marcellus production…


New proposed $2.75bn pipelines to deliver more Marcellus shale gas to US East Coast, Gulf, Midwest

A consortium of New Jersey and Pennsylvania utilities wants to develop a 105-mile pipeline to deliver low-cost Marcellus Shale natural gas to East Coast customers, easing bottlenecks that caused price spikes last winter. The PennEast Pipeline Company has announced plans to build a $1 billion, 30-inch-diameter pipeline from Luzerne County to the Trenton area. Utilities…