In north Texas, Barnett Shale played a major role for the rise and eventual fall in the recent Texas energy boom. As the American company Chesapeake Energy abandons the now nearly idle Barnett Shale – only three rigs are still drilling, compared to more than 200 in the Permian Basin – the French company Total moves in to stake their claim.
“Natural gas prices have been very low, causing many producers to pull back,” Steffy says, “waiting to see what will happen in the market.”
Steffy says that by moving in on the shale, Total is looking at their long-term prospects. They entered into a partnership with Chesapeake and bought the remaining shares of the company earlier this week. Like a lot of oil companies, Steffy says Total is looking to find more natural gas assets.
“The world is moving away from oil and towards natural gas as a fuel of choice,” Steffy says. “They’re trying to secure these long-term supplies. This is not something they’re looking to start producing in the next few weeks, this is something they’re planning on investing in for years and years to come.”
Steffy says people are hurting in the Barnett region and companies there have cut back. The fact that a company is investing in the area is a good thing.
“It’s a good sign for the folks who work there,” Steffy says.
Post by John Flynn.