US oil and gas boom benefits consumers: ABQ Journal (GREAT ARTICLE SHARE W/ A FRIEND!)
By Kevin Robinson-Avila / Journal Staff Writer | Sun, Nov 17, 2013
After years of steadily rising prices, “low-cost fuel” may seem like an oxymoron.
But thanks to a steady surge in domestic oil and gas production, energy experts say consumers could enjoy inexpensive gasoline and natural gas for years to come.
MAP MASTER“The outlook is for a low-cost energy economy in the U.S.,” said Daniel Fine, associate director of the New Mexico Center for Energy Policy, which is run by the New Mexico Institute of Mining and Technology in Socorro. “This is a long-term trend, not an isolated event, and it’s something almost revolutionary.”
The country’s newfound oil and gas boom, made possible by modern drilling technologies, has helped keep gasoline prices well below the $4-per-gallon peaks that consumers faced just a few years ago. It’s also driven home-heating bills to record lows since 2009.
Now, with production still climbing fast, Fine and others say natural-gas prices will remain moderately low for another five to 10 years at least. And gasoline prices likely will continue to fall into 2014, before stabilizing at somewhere above $2 per gallon for the foreseeable future.
“I believe gasoline will reach $2.35 a gallon or less quite soon, within a year at most,” Fine said.
Gregg Laskoski, a senior policy analyst with the online price-tracking service Gas Buddy, agreed.
“That may seem shocking, but it’s not as outlandish as it sounds,” he said. “The potential is certainly there.”
For more of the article use this link--> http://www.abqjournal.com/302397/biz/oil-gas-production-booms.html
Tags: API, Albuqeruqe, BP, Chevron, Dallas, Encana, Houston, Mancos, MancosShale, NewMexico, More…
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Replies to This Discussion
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Permalink Reply by Bill Roberts on
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Per the article, The price of Oil begins to collapse post Iran nuclear deal....
from Reuters "Oil falls sharply after Iran Nuclear Deal
" ===> http://www.marketwatch.com/story/oil-falls-sharply-after-iran-nucle...
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Permalink Reply by Paul Patel on
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When it is said low natural gas prices...do you mean $4-5 range or less.
Does that mean Shelby County & Panola County (Only with the Haynesville Shale) may not see much activity for another few years at least.
Thank
Paul
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When it is stated "inexpensive natural gas prices for years to come", is anyone able to speculate what natural gas prices could be in 2014, 2015, 2016..
Our only business is from the Haynesville Shale and new activity would really help our business. Otherwise we may need to shut the doors.
Thanks,
Paul Patel
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Permalink Reply by P.G. on -
Current uses of NG can only create so much demand for it which supply can easily meet.
Until something drastic happens that will increase serious demand, seems doubtful that prices will be going anywhere other than where they are now..
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Permalink Reply by dbob on
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Paul
I'd be at a loss to tell you what the total rig count was at the peak in Shelby/Panola County, but I guess it was north of 30 rigs. I think you'll see a slight uptick from where we are right now into 2014, but it is highly unlikely that the high rig count will return anywhere in the foreseeable future.
Abundant gas in the Bakken, low cost of production in the marcellus and utica, and gas in other areas is going to be a big lid on gas prices. For instance, right now, the dry gas portion of the Eagle Ford is not yet held by production. When prices get back up a bit, it may make sense to drill for dry gas in the Eagle Ford to hold those areas by production.
The question then becomes, what is needed to see strong Haynesville drilling -
sustained higher prices
from a combination of retirement of coal fired power plants, general economic recovery, more export, etc . Its all more than 18 months out.
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