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.
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: r.reuters.com/dyb62s) 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.