Cost deflation sees US shale break even prices down by half since 2011

As the oil price remains low exiting the first half of 2015, operators are emphasizing the lower unit costs, or cost deflation, expected for the year. Lower costs are the combined effect of two reduction categories: efficiency gains (structural) and lower service costs (cyclical). Both points are important when estimating 2015 breakeven prices. Since operators…


Huge productivity gains see Marcellus, Utica deliver 85% of shale gas growth since 2012

Increased productivity of natural gas wells in the Marcellus and Utica Shale basins is responsible for 85% of increased natural gas production in the U.S. since 2012, according to the Energy Information Administration (EIA). Natural gas from shale basins is now responsible for 56% of U.S. dry natural gas production. Collectively, shale production from the…


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…


Researchers getting a handle on specifics of fugitive methane from Texas shale gas

The process of hydraulic fracturing shales to extract oil and natural gas has lowered prices and displaced some coal with cleaner-burning natural gas in the US. However, some of the methane being extracting also escapes from oil and gas wells and heads straight to the atmosphere, where it is a potent greenhouse gas. That leakage…