Friday, June 29, 2012

Natural Gas Rig Count FELL by 7 Last Week

We've been talking a number in the high 400's for the market to really believe E&P's are serious about cutting the glut.
The industry is getting there but any stall in the decrease would be bad news, bulls.
Considering the high initial production of shale gas wells, they have to stop bringing new wells onstream, at least for a while.
From Reuters Africa:
The number of rigs drilling for natural gas in the United States fell to a record 13-year low this week, oil services firm Baker Hughes said in its weekly report on Friday.

Low prices are behind the drop in the gas-directed rig count, which fell for the sixth straight week. It was down by 7 to 534 in the week to June 29, data from the Houston-based firm showed.

The gas rig count is about 43 percent lower than the peak it reached in October last year at 936 rigs. There were 38.9 percent fewer rigs drilling for gas this week compared with a year earlier. (Graphic:

The months-long drop affirms expectations that producers may be curbing dry gas production.
However, monthly data from the U.S. Energy Information Administration (EIA) showed natural gas output in the Lower 48 states rose for the first time in three months in April....MORE