WASHINGTON–On Oct. 22, the natural gas spot price at Henry Hub reached $3.00 per million British thermal units for the first time since March 2019, according to the U.S. Energy Information Administration. Driven by increasing liquefied natural gas exports and the start of wintertime heating demand, natural gas supply and demand balances began tightening in late October to provide a harbinger of market expectations in 2021.
At the start of the fourth quarter, representative peer groups of U.S. oil and gas producing companies active in shale plays had reduced their 2021 hedged oil volumes by 25% and hedged gas volumes by 4% compared to 2020, according to analysis from Rystad Energy. However, the report notes that operators are continuing to adjust their hedging strategies moving toward the end of the calendar year, and the amount of anticipated 2021 production under some type of hedge contract was expected to increase.
HOUSTON–The oil and gas industry has cycled through lots of upturns and downturns throughout its history. Last spring, however, operators found themselves wondering if they were facing another bust or approaching the edge of a cliff.
ZELIENOPLE, PA.–In the spring of 2016, the Purple Hayes No. 1H in Ohio’s Utica Shale play made history as the longest lateral ever drilled on shore in the United States. It was a “moonshot” moment in Appalachian Basin horizontal development, opening a brave new world in extended-reach architectures and establishing a number of benchmarks for drilling and completion operations.
Psychologists say constraints often breed creativity. There likely is no better showcase for that theory than the oil and gas industry, which must cope with sudden shifts in demand while delivering free cash flow, complying with strict regulations and continuously improving its environmental profile.
LAREDO, TX.–Oil and gas operations generate massive amounts of data every day that must be sorted, stored, processed and analyzed, from permit filings and well logs to production volumes and custody transfer tickets. And the proliferation of digital technologies is bringing a flood of new data types to an industry in which workflows were already heavily data-intensive.
A classic oil field challenge, as well as fodder for countless jokes, is how we get our engineers, geologists and geophysicists in the same room, and–more importantly–to agree. With the advent of events such as the Unconventional Resources Technology Conference, large strides have been made in linking these three disciplines to improve operational efficiency and productivity.