American Oil and Gas Reporter - August 2020 - 64

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SpecialReport: Marcellus/Utica Update

Report Sees Shale Poised For Growth
PITTSBURGH-Despite challenges, a
maturing shale industry is poised for
growth as natural gas and oil producers
have slashed the costs of production, concludes the law firm of Babst Calland in
its 10th annual energy industry report.
The 2020 Babst Calland Report-The
U.S. Oil & Gas Industry: Federal, State,
Local Challenges & Opportunities; Legal
and Regulatory Perspective for Producers
and Midstream Operators covers topics
ranging from the industry's business outlook, regulatory enforcement and rulemaking to developments in pipeline safety
and litigation trends, Babst Calland says,
adding that its attorneys' collective legal
experience and perspectives on these and
related business developments are highlighted in the report.
"The U.S. natural gas and oil industry
has experienced tremendous growth and
change since we first published this
report in 2011," comments Joseph K.
Reinhart, shareholder and co-chair of

Babst Calland's Energy and Natural Resources Group. "Fast forward to an unprecedented 2020 with a pandemic, a
corresponding economic slowdown, and
an oversupply of natural gas and crude
oil. With increased public and government pressure, sustained low prices,
and less-reliable financing options, resiliency will continue to be the driving
force of a dynamic energy market that
continues to evolve."
Reinhart says the past decade clearly
has demonstrated the energy industry's
resilience amid price fluctuations, increasing regulation, opposition from nongovernmental organizations and policy
changes. He says the industry has improved efficiencies, even as lower commodity pricing has squeezed margins,
while also seeking new markets.
According to the Energy Information
Administration, Reinhart cites, the United
States exported more natural gas in 2019
by pipeline than it imported for the first

time since 1985, mainly because of increased pipeline capacity to send natural
gas to Canada and Mexico.
"Perhaps a more fossil fuel-friendly
federal government and the promise of a
predictable federal regulatory landscape
helped boost capital spending and the
prospects of growth through 2019," Reinhard poses. "However, despite federal
predictability over the last few years,
states continue to independently regulate,
legislate and take judicial actions that at
times challenge natural gas development."
A Changing Market
U.S. energy production appears poised
to continue to outstrip domestic consumption, in some measure because of
increased consumption efficiency along
with the obvious ramifications of the natural gas revolution, The 2020 Babst
Calland Report concludes.
It notes the global economic slowdown
coupled with an oversupply of natural

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American Oil and Gas Reporter - August 2020

Table of Contents for the Digital Edition of American Oil and Gas Reporter - August 2020
