Mexico is experiencing a very tight natural gas market in part because its dry gas production is declining for lack of any onshore gas-directed drilling, Ross Wyeno, Platts Analytics senior energy analyst with S&P Global Platts, said May 17 during Benposium 2017 in Houston.
Bentek Energy expects that Mexican dry gas production will decline by about 0.5 bcfd during the next year. Benposium is an annual conference hosted by Bentek, which along with Eclipse Energy Group, formed Platts Analytics.
The government of Mexico reported the country’s total dry gas production reached 3.2 bcfd in March, down 530 MMcfd from a year ago.
Unlike Mexico, US rig counts are increasing, especially for oil-directed drilling.
The US drilling rig count during the week ended May 12 recorded its 17th consecutive increase, bolstered again by rigs targeting oil (OGJ Online, May 12, 2017).
The overall US tally of rigs gained 8 units to 885, Baker Hughes Inc. said in its latest rig count. The total was the highest rig count since Aug. 21, 2015. Gas-directed rigs edged down 1 unit to 172 for the week ended May 12, which still was up 91 since Aug. 26, 2016. One working rig was unclassified.
In a keynote address to Benposium, Steve Woodward, Antero Resources Corp. senior vice-president of business development, discussed his firm’s gas production in the Marcellus and Utica shale plays. Antero Resources of Denver is an upstream company while Antero Midstream Partners LP provides midstream services.
“It’s great being a midstream company when you’ve got a reliable company to drill wells for you,” Woodward said.
Shale production has become very predictable, Woodward said, adding the unconventional E&P could stand for exploitation and production instead of exploration and production.
“It’s basically like a farmer going down the corn rows,” Woodward said of shale reserves.
Antero’s net production for the first quarter averaged 2,144 MMcfd of gas equivalent, including 99,119 b/d of liquids (28% liquids).
Contact Paula Dittrick at [email protected].
Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.