Commodities
Shale Executives Raise Bar to Boost Gas Drilling, Survey Says
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Shale bosses in the US Great Plains and Rocky Mountains are raising the natural gas price threshold they need to reap profits and substantially boost drilling for the heating and power plant fuel.
Drillers need to receive at least $3.69 per million British thermal units for the gas to turn a profit, a 7.6% increase in just three months, the Federal Reserve Bank of Kansas City said Friday. To cue a rejuvenation in drilling for untapped reserves, executives told Fed surveyors they’d need prices around $4.66, or 10% more than the previous figure.