Insight
Will higher prices spur a gas drilling rebound?
This report is currently unavailable
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...
Table of contents
-
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
-
Gas drilling rebound, a myth or reality?
Tables and charts
This report includes 6 images and tables including:
- Chart 1. Expected average price of a new gas rig development vs. currently active gas rigs
- 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)
- Chart 2. Returns for select Mid-Continent plays
- Chart 3. Returns for key plays at $4/mmbtu
What's included
This report contains:
Other reports you may be interested in
Commodity Market Report
Southern Cone gas and power short-term outlook: April 2024
Monthly report analysing the gas and power fundamentals and prices in Argentina, Brazil, Chile and Bolivia until December 2025.
$2,000
Commodity Market Report
North America gas short-term outlook: Henry Hub generates support while Waha falls into an abyss
Can prices rebound to $3/mmbtu by the start of winter?
$2,000
Commodity Market Report
North America coal short-term outlook April 2024
Sizeable supply response in Q1 is behind the downgrade to the 2024 thermal coal production forecast.
$5,000