Unconventional Nat Gas -budgets cutUnconventional Gas Being Cut from Exploration Budgets
In the U.S., the development of so-called unconventional onshore gas supplies will “rapidly slow” as the number of rigs is cut along with capital spending plans, due to the economic slowdown and lower U.S. prices. If demand stabilizes, this will be “supportive” of prices, it said.
Unconventional gas deposits are generally more expensive to develop and need a greater number of wells than conventional reserves.
New LNG supplies and lower demand for gas led Bernstein to reduce its 2009 global gas price estimate to $8 a thousand cubic feet from $8.75 and its 2010 forecast to $9 from $10. That’s more than the consensus estimates for the two years of $6.97 and $7.65, respectively, Bernstein cited in the report.
Source
www.amprogram.com
Source
www.bloomberg.com/energy