Forward curve shape disincentivizes near-term Appalachia gas production growth: executives

摘要

With forward curve data suggesting that the current high price environment will deflate by mid-2022, Appalachia gas producers do not have a real incentive to increase production in the foreseeable future, Range Resources executives told investors at the company’s third-quarter earnings call Oct. 27. “We fundamentally don’t believe the market is indicating that Appalachian producers need to grow in the near term,” Range’s chief operating officer, Dennis Degner, said, highlighting the mismatch between the time needed to get new wells online and how long forward curves predict high prices will last.