When it comes to oil and gas industry news and information, no company keeps its customers as informed as Essentra Pipe Protection Technologies. If you’re curious about the latest information at the top of the year, this blog will help place things into perspective. As it stands, the combination of horizontal drilling and fracking has greatly increased the United States’ natural gas supply while sending prices plummeting. With a 35% increase in production since 2008, prices have dropped by more than 60%. 2015 brought some of the lowest fuel prices since 1999, and prices are expected to remain low for the foreseeable future. Read more from Essentra to learn what this all means for 2018.
Higher Production and Increased Efficiency
US gas production is expected to increase by up to two percent per year over the next several decades, and the unstoppable rise is attributed mostly to vast, low-cost resources. With more than a century of supply, the domestic natural gas supply is expected to remain robust even as prices stay low. These facts, along with the wide availability of high quality OCTGs (oil country tubular goods) offered by Essentra, have made the US shale oil and gas industry extremely efficient.
Falling Prices Lead to Greater Optimism: The Cycle Never Ends
There’s considerable optimism around US gas and oil production, and the outlook is so bright that it’s driving down yearly price projections. In simpler terms, every time the EIA’s modeling system looks into the industry’s future, it forecasts a lower price. The advantages of low-cost natural gas are valuable because they give the United States an edge over their global competitors, while leaving American families with a higher disposable income.
Another aspect of this cycle is that producing companies also reap benefits when they invest in oilfield products by Essentra, that not only provide more bang for their buck, but also help protect their bottom line. Ultimately, as consumers have more money to spend, and as companies save, they’ll bolster the entire US economy.
The Changing Role of Natural Gas in America
Because of the growth of the shale industry, the US has the world’s largest and most adaptable market in terms of exports and domestic demand. We’ve seen natural gas become a crucial component of our energy complex. For instance, natural gas is now America’s primary electricity source; it has helped cut the sector’s carbon dioxide emissions by more than 30% since 2005. Natural gas provides a backup to wind and solar power development, and it’s leading a rebirth in the American chemical industry as well. Drilling companies in the US are moving to secure their positions and make investments in OCTGs through leading companies like Essentra.
Supply and Production Exceed Demand
Despite increased usage of natural gas in a variety of sectors, the EIA expects the pace of production to double that of new demand in the next few years. It’s America’s extensive, low-cost resource base that will allow the country to export more natural gas to places all over the world without a corresponding increase in domestic pricing. In any event, exports will be balanced with higher production, which will continue to keep prices low.
From a human development and climate change standpoint, it’s almost a moral requirement to export modern fuels such as natural gas. Furthermore, most of the world’s advanced economies are turning to gas as a power source. As a result, the American natural gas industry is flourishing; demand is high, but accelerated production is meeting that demand and then some.
Essentra is Your Standard Leader
At Essentra Pipe Protection Technologies, we’re proud to do our part to ensure safe, economical natural gas production. As a company, Essentra won’t take for granted the fact that we are an API standard leader in pipe protection products; instead, we thrive on continuing to manufacture top quality products that producers can trust and rely on. Connect with us today toll-free at 877-276-9208.