- US shale natural gas producers are the epitome of what the shale era entailed.
- Massive borrowing and outspend have resulted in significantly lower prices in recent years, but things are finally starting to change.
- By year-end, structural demand increase via exports will be higher by ~2 Bcf/d, while Lower 48 production will be ~9 Bcf/d lower.
- Now, the question is, what will producers do now with the 2021 curve near $3/MMBtu? We think they will be more disciplined this time around, and with the debt wall approaching and lack of capital out in the market, we think higher prices could last this time around.
- It's been a long-time in the making, but the natural gas market is sorting itself out. A supply-led deficit is coming, so brace yourself.
For further details see:
Natural Gas: A Long-Time In The Making