Natural Gas Prices are Slowing Production
Friday, July 20, 2012
According to Energy Digital, a global energy portal, the oversupply of natural gas has caused prices to drop. The drop in price is resulting in the slowing of production, which includes shutting down some Marcellus rigs, temporarily.
The article claims that the number of rigs operating in Pennsylvania is down 29 percent from its peak last year.
Read it:
“The slowdown is no surprise seeing as many exploration companies have been planning on shifting drilling equipment to areas where the oil and natural gas is more profitable. The warm winter, further depressing demand and prices, had an influence as well.”
Over half of the wells drilled in Pennsylvania are not producing yet. Right now the state has more than 5,000 wells drilled.
» Via: Energy Digital › Natural Gas Prices Force Down Marcellus Rigs
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