The US shale gas sector is in deep trouble!

Current, low gas prices has dramatically cut the amount of potential shale gas reserves that is commercially viable to exploit, reducing US dreams of energy independence. The Henry Hub’s gas spot price for much of this year was around $3 per MBTU. In November, shale gas spot prices improved reaching $5 per thousand cubic foot, reports the FT.com, due to the onset of increased seasonal demand because of winter, November’s latest price is still insufficient. However, according to Ben Dell, of Bernstein Research in New York, spot gas prices should be around $7.50 to $8 a thousand cubic foot to be economic. http://www.oxfordprospect.co.uk/US-Shale-gas-in-crisis.html

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s