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6 Pages

Will higher prices spur a gas drilling rebound?


Will higher prices spur a gas drilling rebound?

Report summary

The worst days appear to be over for North American gas producers. Cash prices are up $2/mmbtu since this time last year, storage inventories are back in neutral territory, and for the first time since late-2011 the NYMEX curve offers producers a chance to lock in prices above $4/mmbtu. Last year's gas and NGL prices damaged producer balance sheets, but cash flows are improving. At current market prices, lean-gas plays like the Haynesville Core and Fayetteville offer returns above 15%, and...

What's included?

This report includes 2 file(s)

  • Will higher prices spur a gas drilling rebound? PDF - 518.06 KB 6 Pages, 1 Tables, 5 Figures
  • Will higher prices spur a gas drilling rebound DataFiles.xls XLS - 360.50 KB

Description

This Gas Markets Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For participants, suppliers and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

We provide detailed supply, demand and price forecasts based on our integrated upstream, power, coal and LNG research. Our regional gas experts are based in the markets they analyse, providing comprehensive analyses of regional and global gas markets.

If you want to understand complex gas market dynamics and plan for the future, Wood Mackenzie is the premier resource to help you gain a clear, competitive advantage.

  • Executive Summary
    • Gas drilling rebound, a myth or reality?
      • Relative returns-key consideration for capital allocation
    • Key companies to watch
    • Key risks to a gas rig rebound

In this report there are 6 tables or charts, including:

  • Executive Summary
    • Chart 1. Expected average price of a new gas rig development vs. currently active gas rigs
    • Chart 2. Returns for select Mid-Continent plays
    • Chart 3. Returns for key plays at $4/mmbtu
    • Chart 4. Percent of low-cost gas acreage vs. gas development focus
    • Table 1. Natural gas rig counts and stated gas price for increased gas development for key companies
    • Chart 5. Rig fleet average 6-month productivity (new drilled volume)
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