Gas Plays Likely to Bear’Brunt’of Service Activity Slowdown

摘要

The projected slowdown in onshore drilling and completion activity in the US will likely hit gas-prone plays like the Marcellus and Haynesville Shale regions the hardest,which could exacerbate equipment oversupply issues across the shale patch despite moves contractors are taking to reduce capacity.”Depressed gas pricing is negatively affecting the activity outlook in the gassy basins,which will likely bear the brunt of the activity reductions in 2020,” said Jeff Miller,CEO of Halliburton,which owns the industry's largest pressure pumping fleet.Henry Hub spot and futures gas prices have fallen below $2 per million Btu this month-a remarkably low level for midwinter-with front-month contracts at their lowest levels since 2016.With prices so low,the US Energy Information Administration said US gas production has likely peaked and will gradually fall over the next two years,a trend that could accelerate if gas prices remain depressed(NGW Jan.20'20).