What Happens If Energy Prices Drop?

I understand that high and rising energy costs provide a healthy profit incentive for Marcellus exploration, drilling and production, but how (in specific terms) would the Marcellus boom be affected if natural gas and/or crude oil prices were to drop, like in late 2008/early 2009?

 

Let's say we experience another wave of a bank failures, leading to another recession and crude oil prices hit $40-$50 barrel, along w/lower natural gas prices:

 

Do companies stop new drilling projects? Are existing gas wells taken offline or idled? Are industry layoffs to be expected? How was the industry affected (in specific terms) by the late 2008 energy price plunge?

 

Thanks :)

Views: 1142

▶ Reply to This

Replies to This Discussion

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on October 22, 2011 at 3:27pm
Then what happens? Do the big guys then crank the valves half shut on our wells in order to maintain a price level thus reducing our royalties? By then they will have oodles of wells to draw from.
Permalink Reply by Mickgyver on October 22, 2011 at 9:25am
When we can produce more than enough to cut back on foreign oil dependance  then we will have to worry about this area getting cut back drastically I would think . At least letS hope so

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service