Will the Barnett Shale Return? Back to Blog
In reality, the Barnett Shale never left the north Texas area, but drillers did for the most part. Previously, a great combination of events, high natural gas prices and new horizontal drilling and rock fracturing technology set off an exploration boom which lasted 5 or 6 years. Although Mitchell Energy had produced Barnett Shale gas for years through vertical wells, the area did not explode with new oil and gas companies until 2003. Most of the exploration companies who still have active leases in the Barnett have reduced their drilling over 50% and indicate their continued lack of interest in 2014. However, recent extreme cold weather, as recently predicted by Farmer’s Almanac, have caused natural gas prices to rise. The January 1, 2014 natural gas spot price on NYMEX closed at $4.41 per MMbtu, the highest price since August, 2010. At what price does a drilling boom return to north Texas is anyone’s guess, but futures prices over $5.00 per MMbtu most likely spurs landmen to return to courthouses to determine which oil & gas leases may be back up for review. We at wellreports.com are watching drilling permit count and will report significant increases in the number as it occurs.