A 30-year oil and gas veteran gives his perspective on the E&P space, oil prices, OPEC, LNG and New York’s shale

John Gerdes, Head of Research, KLR Group spoke to Oil & Gas 360 in an exclusive interview.

Oil & Gas 360® had an opportunity to speak with John Gerdes about the oil and gas industry from his perch in Houston as KLR Group’s Managing Director and Head of Research. KLR is a merchant and investment bank, research house, institutional sales and trading firm that is focused on the natural resources and energy space. In th...

Analyst Commentary

KLR Group Energy Research Team, Oct. 22, 2014



U.S. associated gas production growth should moderate in sub-$90 NYMEX oil environment



We analyzed the effects of lower oil-directed activity on associated gas production growth. Our base case anticipates a NYMEX ~$92.50 oil/~$4.25 gas environment long-term and U.S. associated gas production growth of ~3 Bcfpd in ’15 and ~2 Bcfpd in ’16. In an ~$85 NYMEX oil environment, the U.S. oil rig count could potentially fall ~10% resulting in U.S. associated gas production growth ~2.5 Bcfpd in ’15 and ~1.5 Bcfpd in ’16. In an ~$80 NYMEX oil environment, the U.S. oil rig count could potentially fall ~20% resulting in U.S. associated gas production growth of ~2 Bcfpd in ’15 and ~1 Bcfpd in ’16.  


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