After nearly two years of contending with historically low commodity prices, a majority of the Appalachian Basin's leading producers have retreated almost exclusively to their dry natural gas acreage, where low breakeven prices and prolific wells are being used to defend against the downturn.
In the nation's leading gas basin, the move is no surprise. But it marks a shift away from touting natural gas liquids (NGL) growth and what was recently a balance for rigs that were spread more evenly across wet, condensate and dry gas fairways throughout Ohio, Pennsylvania and West Virginia. The precipitous fall in oil prices that began in June 2014 and weighed heavily on the markets for ethane, butane and propane is not the only factor underlying the move.
Prolific wells, production beats, better economics and a desire to maintain momentum during the slump have all aligned to shape a trend that points to the likelihood of more natural gas production this year in a basin that's saturated with it.Click here to read the whole article.
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