Natural Gas Producers Dropping Rigs
This article in the Houston Chronicle takes a look at efforts by natural gas producers to address falling prices, noting, for example, that rig use has dropped by 56% since it peaked last September at 1,600. Producers appear to be drilling their best wells first, with vertical rig use dropping more rapidly than horizontal rig use. The article goes on to note that the Energy Information Administration expects gas in storage to reach 3.659 trillion cubic feet by October — total storage capacity in the U.S. is about 3.8 trillion cubic feet.
Interesting.
