The U.S. Natural Gas Story in 15 Charts

Energy , Gem , Natural Gas Mar 14, 2017 No Comments

Natural gasThe story of U.S. natural gas gets referenced a lot but you may not know whats going on. Here are 15 charts that tell the story of the U.S. natural gas market which has been completely changed by the rise of horizontal drilling and hydraulic fracturing.

In the past few years, new technologies and cheaper costs allowed producers to access gas trapped in parts of the U.S. previously considered unreachable.

These include:

1)   Drill bit steering has been enhanced.

2)   Exponentially improved and perfected techniques for hydraulic fracturing. These were first pioneered by Mitchell Energy, now part of Devon Energy NYSE: DVN .

3)   The development of horizontal drilling, which allowed for much cheaper costs. Whereas before you might need to drill 10 wells in an area, you could now drill just one.

4)   With new techniques for fracturing, and much lower costs from horizontal drilling, companies were able to spend less and learn much more quickly than they would have otherwise. Horizontal drilling has now essentially taken over drilling in the U.S.

 

Drilling for natural gas took off in shale plays across the U.S.

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Source: Baker Hughes North America Rotary Rig Count

via The U.S. Natural Gas Story in 15 Charts.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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