Centennial, CO, May 5, 2020 – East Daley Capital Advisors, Inc., an energy data and insights company which merges commodity and financial analysis, released a new report that highlights the decline in natural gas production by basin across the U.S. East Daley is tracking over 3.1 Bcf/d of natural gas curtailments this week, directly measuring the impacts to midstream companies on a real-time basis.
Low oil prices are leading to widespread oil well shut-ins across many basins, significantly reducing both U.S. crude oil and natural gas supply during the past two weeks. According to the report, U.S. natural gas production from oil basins has declined by more than 3.1 Bcf/d since late-March 2020, largely due to shut-ins and the suspension of well completions in oil basins.
Additional key findings of the report include:
“Producer reaction to the significant drop in demand has been swift and natural gas gathering and processing assets will be some of the first to be impacted by production curtailments,” said Ryan Smith, senior director, Commodity Research, East Daley Capital and author of the report. “For this reason, our team is watching counterparty risk and shut-in levels on a daily basis and working with our clients to pivot and develop strategies that are responsive to the risk.”
To learn more about the impact of shut-ins to midstream companies, register for East Daley’s webinar on May 6 at 11:00 EST.