Some US shale oil producers are reviving their interests in natural gas as the outlook for gas prices improves. Last week, Continental Resources said it moved some of its Oklahoma drillings to gassier areas, anticipating stronger gas pricing in 2021. CEO William Berry said the company has some major oil projects thanks to its flexibility that allows the company to capitalize whichever commodity has better margins.
EOG Resources announced a new natural gas discovery in Texas, with an estimated potential reserve of 21 Tcf. The finding is located in the Eagle Ford and the Austin Chalk formations. EOG Resources said it had drilled 17 wells so far from identified 1,250 premium drilling locations and. EOG said the Austin Chalk formation could generate competitive returns similar to its large inventory of premium oil plays.
The US Energy Information Administration forecast that the lower-48 US states would experience colder winter this year, with the temperature expected to be 4% lower than the previous winter l, which may sustain natural gas price gains.
