Marcellus Output to Hold Strong, Even as Producers Slash Spending

摘要

Marcellus producers are responding to weak gas prices by cutting capital spending and scaling back drilling plans. But even with activity slowing, output from the world's largest gas play is expected to grow this year. Lower spot prices are cutting into production revenue for exploration and production companies in the Marcellus. The spot gas price at the benchmark Henry Hub has fallen by more than a third in the past six months—from an average of $4.59 per million Btu in June to $3.03/MMBtu in the first weeks of January.