At the 2019 ADI Forum, Uday Turaga, CEO of ADI Analytics, highlighted the remarkable impact of shale gas production on market dynamics. The sheer success of shale producers, particularly in the Marcellus, has kept natural gas prices in check despite growing demand.
Marcellus remains the dominant force in U.S. natural gas, with producers like EQT and Range Resources continuously driving costs lower. Break-even prices for some wells have fallen from $1 per MMBtu to as low as $0.85-$0.90, reinforcing Marcellus’ position as a cost leader in the industry.
Meanwhile, associated gas—produced as a byproduct of oil drilling—continues to claim a larger share of total gas output. This shift further disconnects gas production from traditional supply-demand pricing, linking it more closely to oil market economics.
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ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
We also host the ADI Forum that brings c-suite executives together for meaningful dialogue and strategic insights across the oil & gas, energy transition, and chemicals value chains. Learn more about the ADI Forum.
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