The 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.
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.