Abstract
Two plausible scenarios for gas price recovery may alter the current shift of North American unconventional gas companies, diverting capital investment into oil rather than gas development projects. US gas producers have paved the way for replacing dwindling domestic gas production from conventional to unconventional resources. Short-term gas delivery contracts dominate the US market, and US gas prices have responded rapidly to economic changes. The strategy shift includes moving gas rigs to liquid prone areas, as shown in US rig count statistics. The question remains whether this strategy shift of US gas operators, aimed at restoring their corporate earnings, will lead to a timely recovery of wellhead gas prices. Serious doubts about the ability of companies to meet wellhead breakeven cost in unconventional gas plays could slow down the emerging global interest in unconventional gas development projects.
| Original language | English |
|---|---|
| Pages | 74-81 |
| Number of pages | 8 |
| Volume | 109 |
| No | 1 |
| Specialist publication | Oil and Gas Journal |
| State | Published - 3 Jan 2011 |
| Externally published | Yes |
ASJC Scopus subject areas
- Fuel Technology
- Energy Engineering and Power Technology