Hydraulic fracturing and horizontal drilling have unlocked shale deposits of oil across the U.S., and drilling efficiencies have helped boost rig yields to record volumes from the Permian to North Dakota’s Bakken play.
Record demand, record low temperatures and record production as the cold grips the nation and of course the natural gas. Natural gas rallied and broke as traders tried to assess the cold and new data from the Energy Information Administration.
Winter is bearing down on the energy markets and what was and what may be is being most reflected in the natural gas market. Nat gas hit a six-month high as cold temperatures conspired to lower supply to the lowest level since 2008.
Even with OPEC forecast to keep its output quota unchanged at a meeting this week, falling oil demand and prospects for increased supply from some member states mean the group’s leader, Saudi Arabia, will have to cut production anyway.