Today I'll introduce you
something about the archetype of the Drilling
Platform Industrial Models.
The drilling rigs are gone from
the hills surrounding this Pennsylvania town of 30,000. The hotels and bars are
quieter too, no longer packed with the workers who flocked in their thousands
to America's newest and biggest gas field.
The drilling boom of the past
seven years is over, even though thousands of existing wells in the Marcellus
region still produce a fifth of U.S. natural gas supply.
The Energy Information
Administration now forecasts overall U.S. gas output to hit a record in 2016
for the sixth year in a row. A drop in Marcellus production could snap that
streak and help prop up prices that have fallen by two thirds since 2010.
U.S. natural gas production has
risen 30 percent since 2008 when the development of hydraulic fracturing, or
fracking, and horizontal drilling unlocked vast shale gas reserves, swamping
the market with new supply and causing a collapse in prices.
To be sure, the impact of the
slump in drilling permits could be mitigated by other factors. New pipelines
coming online in 2016 will allow hundreds of wells already drilled to be hooked
up to the grid. A harsh winter could also boost heating demand for natural gas.
Several gas producers, including
Chesapeake Energy and Cabot Oil and Gas, have announced production cuts in the
region.
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