Drilling slowdown affects service companies
Monday, March 2, 2015
Since December, more than a third of rigs in Ohio have stopped drilling. The Repository reports that if oil and natural gas prices remain low, work will continue to slow down for service companies, too.
Ohio Department of Natural Resources statistics show that on Dec. 13, 2014, rigs in the Utica Shale peaked at 59; as of the third week of February 2015, the rig count was 37, the lowest number of rigs since May 3, 2014.
Even though natural gas prices have been low for quite some time, Utica Shale wells are able to produce natural gas liquids (NGLs) and ultra-light crude oil, but the drop in oil prices has affected the value of those products. Separating NGLs from dry gas can cost more than the NGLs are worth.
Via: The Repository > Service companies hit by drilling slowdown
Related
- Chesapeake backs off, 2015 drilling numbers lowest since 2004 Feb. 26, 2015
- World oil prices affect Ohio drilling Feb. 25, 2015
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