Barnett Shale Honeymoon Is Over But Marriage Still Solid

摘要

Stories abound lately about changes that are taking place in the Barnett Shale gas-producing region of north Texas. Barnett Shale companies are taking leases off the table and announcing pullbacks. So, what is happening? The short answer is that companies are taking a breath and re-evaluating the pace of growth based on the current business environment.rnNatural gas prices rose rapidly compared to historical trends, and higher prices fueled competition among companies bidding for mineral leases. The result was high bonus paymentsrnand rapid development. The combination of falling natural gas prices and a credit crunch is forcing producers and midstream companies to reassess the pace at which they can and want to grow in the Barnett Shale, but it hasn't affected the Barnett Shale's long-term viability or production potential.