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Problems in US Gas Sector

Reduction of oil production the U.S. and decrease of working drilling rigs cause negative changes in other inherent from oil – gas sector.

 

According to words of analysts, number of active drilling rigs impacts far over ranges of its technological sector. Forecasts for natural gas market are connected with statistics of oil sector.

 

In case of offer glut on oil market and decrease of drilling rigs number gas market could see deficit, as it should be expected fall of associated gas production volumes. As a note: associated gas is a product, which extracts from oil reservoir together with oil.

 

Forecasts are not satisfactory: daily average volumes of associated natural gas can fall to 1 million cubic metres in the next year. It will be a react to price fall on oil market.

 

 

At the moment in forecasts on shale gas producing it is expected that in October of current year it should be expected continuation of downside volume dynamics. Approval of this forecast can indicate October as the fourth month of decrease, which will be and anti-record in shale sector.

 

During 2015 oil prices have fallen by more than 50%. On this background oil and gas companies cut number of active drilling rigs by 60%. Experts advise to stay away from attempts to increase number of rigs and keep current state of affairs as much as possible to impact balance of world’s oil market. Forcing of events by attempts to increase number of rigs could enlarge excess of offer on market, which may lead to bigger and more abrupt fall of prices.