Moody’s: Natural gas to remain in excess supply in 2012

On February 22, 2012 — No comments

Moody’s predicts that although exploration and production companies will cut their capital spending on natural gas in 2012, it will still remain in oversupply.

A new report from the investors’ service said exploration and production companies will reduce dry gas capital spending by about 40 percent in 2012 and they will reduce their number of new dry gas wells by about half.

That’s in line with what Chesepeake Energy announced in January.

Oklahoma City-based Chesapeake, whose Barnett Shale operations are headquartered in Fort Worth, said that it will cut production by 8 percent, meaning it will produce slightly less natural gas in 2012 that it did in 2011. The reductions will come in the Barnett and Haynesville shales.

For the rest of the story visit, Moody’s: Natural gas to remain in excess supply in 2012