Top U.S. gas plays have added horizontal rigs recently but not enough to lead to a sustainable recovery for the sector, analysts say, as companies keep purse strings tightened.
The optimism seen by some gas producers when the COVID-19 pandemic hit demand for oil, leading to a slowdown in oil production along with associated gas, was short-lived. With production at about 90 Bcf/d, oversupply remains.
The “growth story is over for the Appalachian Basin, at least in [the] short-term,” according to Artem Abramov, head of shale research for Rystad Energy.
This post appeared first on Hart Energy.