For those of you who turned on the morning news this morning while you were getting ready for work, drinking your coffee, or driving rambunctiously late to work, I bet I can guess what you saw/heard. Besides all of the typical traffic news, I’m sure they spoke about the crazy arctic weather blasts or oil industry layoffs and prices.
The oil and gas industry has been hurting for the better part of a year now. With layoffs, cut prices, and well shut-downs, the industry has taken a tumble. Along with the price of oil falling, natural gas prices have also remained low due to a warmer winter and a surplus amount in storage. However, I am wanting to change the focus of this blog. I would like to focus on a couple of exciting things happening in the oil and gas industry.
Rising Prices
For those of you who have recently filled up your tank of gas, you may have noticed the price slightly increased. The reasoning for this? Crude oil has posted its first monthly gain since June. For seven straight months, crude oil has experienced a decline. Since June, prices have dropped more than 50% which is the fourth largest decline in oil history over a six month period. However as February came to an end, the prices have increased for the first time to above $49 a barrel. Now, whether or not this increase is here to stay is a question that may be too soon to tell. A report done by BMI Research stated that for the first half of the year, the oil prices are expected to remain low and volatile. Oil prices aren’t the only thing that had an increase for the month of February. Natural gas also went up 1.26%.
Breaking Records
I know I have been talking about the Marcellus Shale a lot lately but it just continues to amaze me! Especially when I come across exiting information such as this. Records have already been broken in this shale with the amounts of shale gas being produced in the gold rush.
Yet, drilling companies in Pennsylvania have broken another record! In 2014, shale gas production increased by 30 percent. By the second half of 2014, the shale had produced more than two trillion cubic feet of gas leaving the total for the year at 3.7 trillion. This makes up for 16% of what the entire United States consumes annually. According to the EIA, the Marcellus Shale is the most productive natural gas formation in the country.
Finally some light shown through all of the downturns in the industry! Between rising prices and breaking records, I would say February was a win for both natural gas and crude oil.
Being that CROFT recently opened our newest service division in West Virginia, I always enjoy reading about the Marcellus Shale and what record it will break next. With so much natural gas being produced, Croft Production Systems is here to help with processing needs. I invite you to check out our product line and as always, feel free to contact us.
http://www.marketwatch.com/story/oil-prices-rangebound-ahead-of-us-inventory-report-2015-03-04
