TMC - Shale producers seen ramping up as natural gas prices surge

U.S. shale producers likely will re-enter the market in response to the highest natural gas prices in nearly a decade, the Natural Gas Supply Association said in its Annual Winter Outlook released this past week. There's plenty of available domestic oil and gas, but speculation has centered on how U.S. producers would respond to higher prices as companies face rising pressure from investors to show spending discipline and as fossil fuels fall into disfavor. "Despite the steady but cautious response from producers over this summer, a sustained price rally will likely translate into increased investment in new development, especially for independent gas-centric producers in North America," the Outlook says. The forecast comes with U.S. benchmark natural gas already trading at $5.64/MMBtu, 83% above last winter's average price. In Europe and Asia, which are seeking liquefied natural gas cargoes from the U.S. and elsewhere, prices are 6x-7x higher than a year

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Shale producers seen ramping up as natural gas prices surge