Top U.S. gas plays have added horizontal rigs recently but not enough to lead to a sustainable recovery for the sector, analysts say, as companies keep purse strings tightened.

The optimism seen by some gas producers when the COVID-19 pandemic hit demand for oil, leading to a slowdown in oil production along with associated gas, was short-lived. With production at about 90 Bcf/d, oversupply remains.

The “growth story is over for the Appalachian Basin, at least in [the] short-term,” according to Artem Abramov, head of shale research for Rystad Energy.

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