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Analyst: Bankruptcies breed hope for higher natural gas prices

Friday, January 31, 2020 by

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It’s no secret that natural gas prices have declined over the last couple of years as an oversupply that’s only gotten worse continues to be a major issue. Last year alone, Americans drilled 17% more than the year before. As a result of natural gas prices currently sit near $1.85 — much lower than the historical norm.

Incidentally, Chris Lewis, a trader and financial markets writer, believes the answer to recovering prices may be the final nail in the coffin for companies flirting with bankruptcy.

According to Lewis, more than 200 oil and gas companies have filed bankruptcy since 2015, and it’s likely that there will be more this year. However, for prices to recover in 2020, it would take quite a few bankruptcies to offset the existing surplus.

Learn more: TopRatedFore X brokers News > Natural gas could see hope through bankruptcies

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Farm and Dairy, a weekly newspaper located in Salem, Ohio, has been reporting on topics that interest farmers and landowners since 1914. Through the Shale Gas Reporter, we are dedicated to giving our readers unbiased and reliable information on shale gas development.

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