Friday, April 1, 2022
The natural gas market is experiencing an atypical recovery due to more gradual rig count growth, fewer uncompleted wells and a shrinking coal-generation fleet, according to ConocoPhillips analysts.
ConocoPhillips Senior Analyst Matt Henderson believes the industry has entered “a bit of a new market,” acknowledging exploration and production companies added only 246 rigs during the 2020-2021 price recovery, compared to 497 rigs in the previous rebound in 2016-2017. Additionally, the slower rate occurred at a time when prices rebounded a lot quicker for both natural gas and oil.
Henderson believes the shift will lead to a more balanced market, with a lower likelihood of becoming oversupplied with “low volatility and a kind of a low gas price level.”
Learn more: Natural Gas Intelligence > A ‘Bit of a New Market’ Emerging for Natural Gas, Says ConocoPhillips Analyst
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