Connecting to LinkedIn...



Shale gas expected to experience sharpest 2015 fall

15/07/2015 by Sharon Shahzad


It has been reported that the United States’ natural gas output is to fall for a third month in a row after being held hostage by plummeting oil prices. This is largely because crude oil price drops forced drillers out of fields that not only produced oil but also gas.

After four years of supplying record amounts, the output of gas in America is showing signs of weakness. For the seven largest US shale basins combined, gas production is set to drop by 0.6% in August, falling to 45.1bn cubic feet a day. The figures were revealed by the US Energy Information Administration (EIA) in its latest Drilling Productivity report.

Over the past year crude oil prices have collapsed by about half, and this is now reverberating in the US shale market. Wells have been shut across the country, in states from Texas to North Dakota; as a result, these liquid-rich reservoirs have seen a decline in gas output as companies have been forced to reduce their operations. This reduction may actually halt the slide of gas prices, however, which have fallen by almost one-third during the past 12 months.

August deliveries of natural gas rose by 1.1 cents (0.4%) to reach $2.875 per million British thermal units; meanwhile, there was a 1.4% fall in crude oil, with prices dropping to $51.48 (£32.88) per barrel. The gas production for 2015 is also expected to expand at a slower pace than before; however, despite only rising by 5.7% compared with 2014’s 6.2%, output has still reached the record amount of 78.97bn cubic feet per day. The past year has also seen a rise in the amount of gas delivered to electricity generators, with a 15% increase according to El Paso-based LCI Energy Insight. As a result of the sliding prices it is expected that the power industry could cause a 13% rise in demand. With the summer hotter than normal, fuel consumption is expected to rise in parallel with air conditioner usage.

The vice-president of market research at Stamford’s Tradition Energy, Derek Salvino, stated: “Production is not showing up and that is partially because the prices are so low. We see some heat in the forecast.” If fuel demand continues to gain, prices in the shale gas industry could resurge.

About Us

Montash is a multi-award winning global technology recruitment business. Specialising in permanent and contract positions across mid-senior appointments across a wide range of industry sectors and IT functions, including:

ERP Recruitment, BI & Data Recruitment, Information Security Recruitment, Enterprise Architecture & Strategy Recruitment , Energy Technology Recruitment, Demand IT and Business Engagement Recruitment, Digital and E-commerce Recruitment, Leadership Talent, Infrastructure and Service Delivery Recruitment, Project and Programme Delivery Recruitment.

Montash is headquartered in Old Street, London, in the heart of the technology hub. Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News


Humans remain largest security flaw in cloud ...

2016-10-21 14:00:00 +0100

With a vast number of companies moving some, if not all, of their operations to the cloud, security continues to be of major concern. Whilst there are numerous patches and firewalls to safeguard defences, it has been highlighted that the most difficult area to protect against is human interaction. This is the view of Jamie Woodruff, a penetration tester and ethical hacker. Woodruff’s views come after he was contracted to conduct a penetration test in or...


Offshore exploration providing boost for oil ...

2016-10-19 09:00:00 +0100

The oil and gas industry has had a notoriously challenging time of late, with the prices of oil plummeting and causing many firms to tighten their belts. However, offshore exploration is providing a much-needed bright spot for the sector, with an increasing number of governments becoming more accommodating. In the past week, it has been revealed that there are big changes afoot for Brazil’s petroleum laws. Shell has already begun to move on this opportu...