The oil and gas industry has provided enormous economic opportunities in places like the Pittsburgh region, from shale gas development or “fracking,” in the Marcellus and Utica shales. But will this recent downturn turn back around again soon? The answer is yes, according to the experts at Harts.
According to an article “Analysts: ‘Rebound’ Coming For Oil And Gas” that appeared in Midstream Business quoting Hart Energy’s Stratas Advisors John Paisie:
“Economic indicators point to a near-term uptick in the oil and gas business after a long and painful downturn, Stratas Advisors researchers told a Midland, Texas, audience March 22.
“We are poised for a rebound,” John Paisie, executive vice president of Hart Energy’s research arm, said in his presentation to the 2017 Permian Basin Outlook Breakfast at the Midland Country Club. There are positive trends, such as Europe’s improving economy and a counterbalance of lingering oversupplies. “We will have a production-demand crossover as the world market rebalances,” Paisie added.”
You really need to read the full piece, which looked at macro factors through the prism of the Permian Basin where the presentation was delivered.
“Natural gas is another matter for Permian producers, Haas said, because “we still have growing production from the Beast of the East—the Marcellus and Utica—that is really driving natural gas production now.” As with crude, gas exports will be key, he added. Exports to Canada are down because Canadian gas is discounted even more than U.S.-produced gas. However, exports to Mexico and LNG volumes will continue to grow.
U.S. petrochemical plants are strongly favored now due to rising NGL production from the shale plays—as well as discounted gas that can cheaply fuel the nation’s growing cracking capacity.
“U.S. petrochemical producers are sitting in the catbird seat” as a result, he said. NGL exports have been strong and will continue to grow, especially propane, Haas said.”
- Be sure to visit Hart Midstream Business
For more information on the recently announced cracker facility in Beaver County, be sure to jump over to the Pittsburgh Business Times special section “Countdown to Cracker.”
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