Friday, June 8, 2012

Natural Gas Rig Count DOWN 23, Futures up 2.8 (cents)

That's more like it but the count is still not low enough to offset well completions over the next few months.
The talk among producers is that the savior of the industry will be the rapid decline in sustainable production that fracked shale experiences.
Kinda funny if you think about it too hard.

From Reuters:

The number of rigs drilling for
natural gas in the United States dropped this week to the lowest
level in nearly 13 years as low gas prices continued to prompt
producers to slow dry gas operations. 
The gas-directed rig count fell by 23 to 565, its sixth drop
in seven weeks and the lowest since September 1999 when there
were 561 gas rigs operating, data from Houston-based oil
services firm Baker Hughes showed on Friday.
The nearly steady drop in dry gas drilling over the last
eight months -- the gas rig count is down 40 percent since
peaking at 936 in October -- has raised expectations that
producers were finally getting serious about stemming the flood
of record gas supplies. (Graphic: 
    But rising output from shale has made it difficult to slow
dry gas production.
Baker Hughes also reported that horizontal rigs, the type
often used to extract oil or gas from shale, fell for a third 
straight week, dropping six to 1,177. But the count is still
just below the all-time high of 1,193 set three weeks ago.
Dry gas drilling has become largely uneconomical at current
prices, but drillers have moved rigs to more lucrative shale oil
and shale gas liquid plays which still produce plenty of
associated gas that ends up in the market after processing.