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The natural gas rig count declined again last week, falling by 15 to 422 vs. 936 a year ago. The...

The natural gas rig count declined again last week, falling by 15 to 422 vs. 936 a year ago. The number of working gas rigs is the lowest since June 1999, but this may not mean a supply crunch is coming as oil rig activity - which yields plenty of natural gas - remains strong. Still, it's hard not to notice the correlation between collapsing gas rig counts and natural gas prices up about 90% in 6 months.
Comments (7)
  • Stone Fox Capital
    , contributor
    Comments (5909) | Send Message
     
    Funny how the drop continues when future nat gas prices suggests rigs should start drilling again. Inventories are back close to the 5 yr avg yet nobody is increasing drilling.

     

    Guess what, without a energy policy we'll end up with $6-7 gas before drilling picks up that will take months to make it to the market. Crazy stuff.
    12 Oct 2012, 02:33 PM Reply Like
  • Exbuggywhipmaker
    , contributor
    Comments (85) | Send Message
     
    Obama wants expensive traditional energy prices so he can push his green alternatives and socialist nanny state agenda. I moved to the US from France and have seen all this first hand before.
    12 Oct 2012, 06:27 PM Reply Like
  • gdonelson
    , contributor
    Comments (36) | Send Message
     
    The gas needs to be a minimum of $4+ in order to break even on the cost of drilling. Rig count is going down because shale wells are not profitable with sub $4/mcf prices. Another bubble...who would have figured?
    12 Oct 2012, 03:43 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    No chance at a shortage. Rigs counts are a poor indicator of a shortage when you should be looking at storage rates.
    12 Oct 2012, 05:39 PM Reply Like
  • rjj1960
    , contributor
    Comments (1361) | Send Message
     
    To compare rig count to 1999 is ridiculous, one fracked well equals 10 conventional wells back then.
    12 Oct 2012, 08:07 PM Reply Like
  • Lance Fiasconaro
    , contributor
    Comments (41) | Send Message
     
    Gold bottomed in 1999. Natural gas in 2012.
    12 Oct 2012, 10:26 PM Reply Like
  • JohnLocke
    , contributor
    Comments (381) | Send Message
     
    Those Rigs that went down were the NOMAC Rigs.

     

    NOMAC = Chesapeake Energy

     

    Chesapeake is sending its rigs to the yard for the winter.
    13 Oct 2012, 03:24 PM Reply Like
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