Major capital investments in the North American gas shales sector could accelerate rates of drilling and production to cause downward pressure on prices. An article on the Reuters.com website explores gas shale investments and their potential impact upon prices.
Natural Gas Price
The low price of natural gas has some people questioning the profitability of shale gas plays in the United States. An article on the NASDAQ.com website explores these questions – especially with the entry of major oil companies into the plays.
An article on the EnergyTribune.com website reviews how just a few years ago LNG terminals were being built in the United States to receive liquefied natural gas, yet today some of those same terminals and more are candidates for exporting the same commodity.
“Wholesale spot natural gas prices rose across the country in 2010. Average spot natural gas prices at the Henry Hub—a key benchmark location for pricing throughout the United States—rose about 12% in 2010 but still averaged under $4.50 per million British thermal units (MMBtu).” Quoted from the Energy Information Administration article.