Rising winter forwards keep Appalachian drilling, production in maintenance mode

摘要

The promise of higher gas prices by next winter could be enough tokeep many Appalachian producers in maintenance mode, holding todrilling plans announced prior to the recent commodity market rout.Earlier this week, forwards markets at Appalachian benchmarkDominion South priced winter gas at its highest in nearly 11 months,with the January contract settling at $2.54/MMBtu. Recent gains haveremained largely intact since then – on Wednesday prices for nextwinter’s peak-demand month settled at $2.48/MMBtu, S&P GlobalPlatts most recently published M2MS data showed.