The slowdown in the oil and gas industry may not be good for royalty owners, but there may be an upside to this downside.
Mike Jacoby, shale energy director for the Appalachian Partnership for Economic Growth, said there is little encouraging news on upstream oil and gas development. Natural gas spot prices in 2015 were at 16-year lows, and most analysts feel well development will likely be curtailed until prices recover.
“Some companies are predicting 2017 will be the year for the turnaround, but no one really knows,” said Jacoby in a statement.
On the bright side, he said, abundant supply and low prices are creating new opportunities midstream and downstream.
“Midstream processors are rumored to be considering NGL petrochemical projects in Ohio. Downstream, the PTT Global Chemical ethane cracker project is ramping up engineering work and anticipating a final investment decision in about a year,” said Jacoby.
Jacoby said gas-fired power plant projects are also actively being discussed.Read more by clicking here.
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