U.S. energy companies are taking their foot off the natural-gas pedal, slowing down their production growth after years of furious pumping, according to a recent blog post by the Wall Street Journal.
The collapse in energy prices has producers and analysts reconsidering natural gas production strategies, the Journal writes. “Gas prices have fallen about 40% in the past year, cutting the incentive to keep drilling, and recent forecasts suggest production will flatten and may begin to decline this year,” the article states.
“This price fall follows eight years of improvements in drilling techniques and high energy prices that have stoked gas output. The boom quickly sent gas prices to historic lows, but output kept rising because high oil prices made it profitable for producers to keep drilling in fields that yielded both oil and gas,” the Journal reported. “Some analysts say the slowdown in natural gas output is more widespread than in previous slumps.”
To read the Wall Street Journal blog post, click here.