NATGAS
US natural gas producers’ commitment to slow drilling activity in response to low gas prices is hitting hard in Haynesville this spring, dampening the outlook for production growth in the summer, Platts said.
- In April the number of new wells drilled in the Haynesville fell to 36 for the month, the fewest since late 2020.
- The EIA is projecting an overall decline of nearly 270 mcf/d in June from Haynesville.
- In recent months, some of the largest gas producers in Haynesville have also announced significant cuts to drilling activity in response to weak prices.
- Chesapeake Energy said it would cut gas production by 400 mcf/d, around half coming from Haynesville. Aethon Energy said it had also made major cuts.
- Looking ahead to the summer, the slowdown in Haynesville drilling activity could be expected to keep gas production there either in continued decline or plateaued.
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