Industry reporting has shown that the Utica shale is outputting more natural gas from fewer wells than the rest of the nation’s reserves. As the oil and gas industry continues to work to improve efficiency, reduce costs, and create a national oil and gas network, the Utica shale is likely to become the target of major production. Throughout the nation, the Northeast is presently producing the most oil and gas. Nationally, the lower 48 states have been able to produce a total of 73.3 billion cubic feet of gas per day, which is an increase of 2% month-over-month.
Record Breaking Highs for Natural Gas
The current output level of natural gas production is believed to break records since 2005. A shift away from crude oil and towards natural gas has contributed to this increase, as well as a global shift away from coal. Though natural gas prices have decreased alongside oil prices, natural gas demand has soared. Many countries that were previously relying upon coal have begun shifting their energy initiatives towards the comparatively far less environmentally harmful gas. The ability to acquire more gas from fewer wells within the Utica shale may have significant ramifications for organizations that are trying to reduce their costs.
Lower natural gas costs are good both for the industry and the economy. They contribute both to falling energy prices (which tend to revitalize the economy) and will make the profit margins greater for those within the gas industry. It’s believed that Utica shale wells have increased initial production rates, which can give companies a boost while oil and gas prices are still low. This will make it easier for companies to stay afloat on the basis of fewer well sites.
Growth of Natural Gas Production
Liquefied natural gas has begun to be exported worldwide, which could also have significant ramifications on the nation’s position in foreign natural gas trade. Natural gas is able to be liquefied once it is sufficiently cooled; once it has been liquefied, it can be more easily exported farther distances. The United States has historically imported to meet its natural gas needs, which was also reflected in the prices of energy across the nation. However, natural gas production has finally increased to the extent that the United States can begin exporting. As natural gas production continues to increase, the United States may be able to become a major player in the energy revolution. Studies have shown that natural gas may reduce greenhouse gases and environmental issues far more than sustainable technologies such as wind power and solar power, if only due to cost; natural home gas is an affordable alternative to other fossil fuels.
The natural gas production, led by the Utica shale, is likely to increase dramatically. Those within the industry will find that regulations continue to increase, as the public’s concern for safety grows. Keystone Containment has everything that oil and gas companies need for oil spill containment in Pennsylvania, Eastern Ohio, and West Virginia. Contact Keystone Containment today to learn more about their full service oil containment systems.