This OilPrice.com article discusses whether the O&G industry’s move towards fracked gas proving to be uneconomical.
Big Oil has staked quite a claim in the natural gas industry in recent years, with supermajors building their presence in that segment in anticipation of the global energy shift from more to less polluting energy sources. Now, however, this claim is backfiring.
Bloomberg’s Rachel Adams-Heard wrote last week that the supermajors have suffered a marked dip in their second-quarter earnings because of record-low natural gas and LNG prices: the result of the classic combination between fast-growing production and demand that has yet to catch up.
The pain might turn out to be particularly acute for U.S. producers. It’s no news that record-high production from the shale patch has driven prices to lows that have eaten deeply into producers’ bottom lines. One industry executive, the CEO of the largest gas producer in the country, EQT, recently called the shale boom “an unmitigated disaster for drillers and investors” and he is probably not alone in this sentiment.