Oil price hits 7-year high; natural gas also on rise

The price of November contracts for West Texas intermediate crude stayed above $80 per barrel Monday, the highest level in seven years. Natural gas is also near a decade-long high, raising hopes locally that the elevated prices will make Outer Continental Shelf production attractive to energy producers.

Natural gas, which has barely averaged $3 per thousand cubic feet since 2011, was at $5.41 on the New York Mercantile Exchange on Monday.

Analysts say energy demand is recovering from the COVID pandemic faster than energy production. Demand for natural gas has been especially voracious in Europe, where prices have risen fivefold.

The introduction of directional drilling and hydraulic fracturing since 2010 has doubled U.S. oil production while leading to a long slide in oil prices. The cost of a barrel of oil fell from around $100 in autumn 2014 to below $40 for much of the years since.

During the long period of low prices, St. Mary employment has fallen from around 27,000 in 2014 to 18,000 now.