Magnum Hunter Resources has shut in 1.7 million cubic feet per day (MMcf/d) of production from 400 natural gas wells in Kentucky due in part to low natural gas prices.
The company said Wednesday it shut in production at the beginning of this year's third quarter after determining production would be uneconomical due to low gas prices and the cost of blending stock to reduce ethane content for transportation purposes.It's getting bad out there. And no decision by the US government on whether to export natural gas overseas where US natural gas selling at $2 can garner $16. I can't make this stuff up.
And it's gonna get worse -- Bloomberg.
Natural gas pipelines coming into service by year end may boost deliveries from the Marcellus shale deposit in the U.S. Northeast by 30 percent, extending a supply glut that helped send prices to decade lows.
As much as 2 billion cubic feet of gas a day are set to flow from the lines in Pennsylvania, Ohio and West Virginia, bound for markets along the Eastern Seaboard, based on government and pipeline-company projections. About 1,000 Marcellus shale wells sit uncompleted, mainly because of a lack of pipeline infrastructure, according to the Energy Department.Later, another article from a reader: rush to liquids backfires for natural gas producers.