North America gas long-term outlook H2 2015 highlights
Upstream activity in North America is lower than ever, but production potential is higher than ever because wellhead breakevens continue to decline. High-intensity completions in gas plays increase recovery rates, while reduced service costs are bringing down drilling and completion costs in tight oil plays. The resulting lower breakevens mean lower long-term gas prices. An average Henry Hub price of $3.07/mmbtu through 2025 supports the investment needed to connect US and Canadian supplies to higher-value markets through pipes, industrial projects, and liquefaction capacity.