Dropping natural gas prices may compromise the shale boom

The Plain Dealer reports that the increasing supply of natural gas, much of it from shale development, has resulted in a significant drop in natural gas prices. As a result, there is a possibility that production will no longer be economical for some companies and they will be forced to shut-in their wells. If this occurs, the economic uptick that Ohio anticipates from shale development could be diminished.

The article noted that the presence of the more valuable natural gas liquids (e.g. ethane, methane, propane and butane) is what keeps the drilling profitable for now. These liquids are keeping pace with global petroleum prices and are securing much higher prices than natural gas. However, there is not yet enough data to determine how much wet gas can be produced from Ohio's Utica shale. Read the full story here.