The Haynesville Shale blog has been running a graphic of rigs in the play each week after the Baker Hughes rig count is released:
A trend appears to be emerging.
Here's MarketBeat with what it means (according to Goldman):
Rig Migration Dampens US Gas production
A bit of a gush in oil returns is putting the brakes on gas production Goldman Sachs GS -0.09% analysts wrote in a research note.
Natural gas production in the U.S. has soared since 2005 as drilling companies began to use new technology to exploit the country’s vast reserves of shale gas.
The gas boom saw prices slump to their lowest in decades, even as oil prices soared to near record highs.
Not surprisingly, savvy drillers have been quick to shift gear and target areas richer in the more profitable commodity.
Goldman cites data compiled by Baker Hughes BHI +0.04% that shows the number of rigs drilling in the Haynesville shale gas formation in Louisiana and Texas have plummeted since the beginning of last year to less than 50 rigs from more than 150. Meanwhile, the number of rigs in the neighboring and liquids-rich Eagle Ford have soared in the same period from just under 100 to nearly 250....MORE