A 66 percent decline in crude oil prices between June 2014 and December 2015 has also triggered a drop in natural gas production, Federal Energy Regulatory Commission staff says in a new report.
The impact has led to the postponement of $380 billion worth of global investment in 2015 in oil and natural gas projects. The U.S. oil rig count dropped by 807 rigs -- a 61 percent decline. There was also a loss of 17,000 jobs in the upstream (or the exploratory sector) of the U.S. oil and natural gas industries, FERC staff said.
So what's next for the U.S.?
“The North American natural gas market will
likely remain oversupplied and prices low in the near term, pushing
high-cost producers out of the market,”
they wrote in the report.
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