Oil and gas companies are feeling the pinch.
Industry experts in Oklahoma believe natural gas prices between $2.50 and $3.50 and oil prices between $45 and $55 dollars are here to stay for a decade or more.
"You have to look at the full-cycle economics and make it worth within this price range. There is no thinking about prices going higher in the future," said Oklahoma Energy Resources Board member Ronnie Irani. "If they do, great. That's icing on the cake, but you cannot afford to work in that environment."
Irani said natural gas is the more promising fuel right now because of increasing use in Africa and Asia.
In addition to prices forecast to stay relatively low for several years to come, people are more concerned about how drilling affects air and water quality, seismic activity, and land rights. SandRidge Energy President and CEO James Bennett said if energy companies want to stay in business, they need to keep paying attention to those issues.
"One, to maintain that social license to operate. Two, because it's the right thing to do and we have the technology and availability now to reduce our footprint and operate in a more socially responsible manner," Bennett said.
Bennett said a lot has changed since the heyday of oil and gas exploration, like companies moving away from flaring, or burning off natural gas from a well because it’s cheaper than oil.
Former Oklahoma Secretary of Energy Mike Ming agreed that energy companies need to turn to technology. He said that need has come full circle, from companies using tech to extract from unconventional plays when prices were high to now needing to still satisfy investors after gluts drove prices down.
"We need to get more recovery from every impacted site that we drill. So, there's a number of technologies that are out there that could enhance recovery, whether it's in conventional fields or unconvential fields," Ming said.
The men spoke at an Oil and Gas Journal panel on the future of energy industry investments.
