The prices for natural gas have increased for 72% for the last 6 months – with such headings news of oil and gas sector of the USA hit the press on October 13-15, 2016.
The increase of the price has been caused by growth of demand for oil for the last months which is linked to hot summer that has smitten many regions of America. At this very time drilling has been ceased in some basins. Yet 6 months ago the flow of gas deliveries from shale formations has led the prices to be reduced to the lowest level as it has been in the 1990th. But the summer period has cardinally changed a situation, by raising the price from $1.9 for MMBtu on April the 15th, up to $3,28 on Monday, October the 10th. Under preliminary forecasts the prices should be stabilized in the fall, but USA is expecting a cold winter, therefore demand for natural gas is going to only be growing (see the last chart from Bloomberg in the appendix to the news).
The last month has brought up many discussions in the energy sector because the drillers of oil and gas Permian Basin have made one important statement – they have revealed so-called in the USA “dirty little secrets.”
“We extract gas in the Permian Basin, but “a dirty little secret” is that namely there one of the massive gas deposits is discovered”, Scott Hanold, an analyst of Royal Bank of Canada in Minneapolis has stated.
It is necessary to note, that the Permian Basin is one of a few places, where drilling is a very profitable business, despite of recession of the prices for a barrel of oil. And with a rise in prices on a product the drillers increase extraction of natural gas as a by-product which already is reaching 7 billion cubic feet a day, Bloomberg data reveals. It is about 8% of USA stocks.
According to Apache estimates, a new discovery that is called Alpine High in West Texas, has about 75 billion cubic feet of gas and 3 billion barrels of oil.
The deposit replenishes with the reliable drilling units made by the American developers, the suppliers. Last week 94 drilling units were seen on a new deposit. Quality matters, and Skyline Energy Development company is one of suppliers of super-power drilling units and other highly technological American equipment of oil and gas sector. If you are a power company or a partner of the sector, please use the contacts on a web site to get an estimate on power equipment of any level: https://skyledllc.com/store/
~ Skyline Energy Development