Natural Gas News – April 27, 2018
Natural Gas News – April 27, 2018
US Northeast Natural Gas Producers Focus Anew on Drilling Efficiencies as Costs Rise
Platts reported: Appalachian Basin natural gas producers EQT and Antero Resources said Thursday they expect greater drilling efficiencies and new midstream infrastructure to boost growth and mitigate the effect of low gas prices and the possibility of higher labor, rig and materials costs. The out-looks were issued as the No. 1 and No. 7 US gas producers, respectively, released financial results for the first three months of the year, at a time when there is pressure on companies in the sector to focus on core areas and consolidate some operations while separating others. EQT reported a sizable loss versus a year -ago profit, while Antero posted a smaller first-quarter profit compared to 2017. The US Northeast shale producing region, which includes the Marcellus and Utica plays, has seen robust activity in recent years, prompting the need for more pipelines, processing facilities and gathering systems to move the gas and NGLs to markets.
June NYMEX Gas Slips to $2.797/MMBtu on Healthy Outlook for Storage Rebuilding
Platts reported: NYMEX June natural gas futures had a weak showing in the US overnight ahead of Friday’s open, as the market looked beyond significantly depleted inventories toward what is expected to be a healthy pace of storage rebuilding going forward. At 6:29 am ET (1029 GMT) in its first day as the new lead month, the June contract was 4.2 cents lower at $2.797/MMBtu. Natural gas inventories continued to draw lower three weeks beyond the typical start of injection season, with the latest storage data from the US Energy Information Administration outlining an 18 Bcf withdrawal for the week ended April 20.
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