Natural Gas Has Important Role for the U.S. Economy

Online PR News – 04-September-2010 – HOUSTON, Texas – The beleaguered US economy has some help on the way with cheaper natural gas to help support and power a hoped-for recovery. Dispersed across the US (and Canada), “unconventional” gas basins are being developed quickly in Texas, Oklahoma, Wyoming, Colorado, Louisiana, Arkansas, Pennsylvania and elsewhere.

For example, the fast-expanding Marcellus Gas Shale drilling play in Pennsylvania has added thousands of new jobs and millions in investment to a region that needs both. Just two years ago the state’s Department of Environmental Protection reported that 195 gas wells were drilled in Pennsylvania’s Marcellus Shale. That number is forecast to be as high as 1,090 wells this year up 459 % since 2008.

Significant gas production from unconventional natural gas basins automatically follows increased drilling such that by 2012 it’s estimated that upwards of 17% of the US gas supply will come from the top unconventional gas basins. This supply-side growth means cheaper natural gas: From a peak wellhead price of $11.32 per thousand cubic feet of natural gas in July 2008, prices have fallen to around $4 by late August, 2010 according to the US Department of Energy.

The result: Low price and high availability of natural gas that is going to be very supportive to a struggling economy which needs natural gas for electric power generation, residential heating, industrial and commercial uses and of late, natural-gas powered bus and delivery fleets.

These important unconventional gas basins are changing with today’s huge gas supply and low gas prices according to Warlick International, a Houston-based oil & gas intelligence firm. The company just published seven new reports that address big changes taking place in leading North American unconventional gas basins, reporting on growth, new economics, future potential and the impact on the North American recovery. To find out more go to http://warlickreports.com.

Warlick International is a Houston-based oil & gas intelligence firm that is a leader in evaluating unconventional oil & gas resource markets. The company has provided business information, marketing counsel, litigation services and strategic solutions to oil & gas, oilfield services and financial sector clients for more than 35 years, with emphasis on upstream energy.