North East gas demand, supply imbalance keeps a lid on future US shale gas prices

The Dominion South Point strip price for the balance of 2015 (March-December) has been settling consistently under $1.90/MMBtu, while Transco Zone 6 in New York is averaging around $2.80/MMBtu in this week’s forwards market. Meanwhile, Northeast and US gas production remain near record levels. The breakeven price environment and looming oversupply leaves producers and the…

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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…

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UK Environment Agency grants Cuadrilla permits for Lancashire shale gas site

The UK Environment Agency said it has granted shale gas pioneer Cuadrilla Resources all of the environmental permits required to carry out operations safely at its proposed shale gas exploration site at Roseacre Wood. Cuadrilla CEO Francis Egan said: “Following such a rigorous review and public consultation of all of our permit applications by the…

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Shale gas in Europe going nowhere thanks to widespread opposition, disappointing data

Energy major Chevron’s decision to stop exploring for shale gas in Poland has highlighted the sector’s uncertain future and role in strengthening energy security in Europe, according to analysts spoken to by Reuters. The US Energy Information Administration has estimated Europe could hold trillions of cubic metres of recoverable shale gas but it is still…

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China to miss shale gas output target for 2015 – CNPC

An influential thinktank inside China’s largest oil and gas company has predicted the country will fall short of an official target for shale gas output this year by almost half, bucking widely held expectations. China missed its shale gas output goal in 2014, producing 1.3 billion cubic metres against an expected 1.5 bcm. China National…

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