In spite of current low prices, the enormous amounts of natural gas contained in the U.S. subsoil make it very profitable to extract if modern drilling techniques are used.
Some energy companies taking advantage of these advances are extracting gas from the Haynesville Shale, which spans Louisiana and Texas. The gains come from extending horizontal drilling by thousands of feet.
Experts claim that if this trend continues, the era of low American gas prices could extend for decades into the future. The cost of natural gas is important because it increasingly powers the U.S. economy and its demand has risen at a 2.4% annual growth rate during the last decade.
The Haynesville field, which produces 8% of the nation’s natural gas, is the second largest in the United States after the Marcellus Shale. Moreover, it has the benefit of being located near several major pipelines and industrial facilities, thus, an increase in production would have a large impact on gas prices across the entire country.
Production of natural gas has gained relevance because:
- Domestic natural gas is abundant and inexpensive, mainly due to the newer drilling and extraction techniques.
- Gas now is used to generate about 30% of U.S. electricity and heat nearly half of all American homes.
- Its cost is critical to the current administration’s aim to reduce carbon emissions in electricity generation.
Furthermore, the costs of extracting gas using hydraulic fracturing have fallen recently. Experts agree that inexpensive gas will have a profound impact on energy generation and the overall U.S. economy.
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Certain statements in this blog post may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release and other potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statement.