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The number of natural gas drilling rigs working in the U.S. may have topped out for now, falling...

The number of natural gas drilling rigs working in the U.S. may have topped out for now, falling by 13 in the latest week to 366, while oil rigs rose by 10, according to Baker Hughes' weekly rig count. Conoco (COP), for one, has no plans to start redirecting any capital toward gas assets until it’s "significantly north of current prices,” an exec said in yesterday's conference call.
Comments (4)
  • wigit5
    , contributor
    Comments (4214) | Send Message
     
    So $4 gas still isn't good enough? Interesting.
    26 Apr 2013, 02:45 PM Reply Like
  • tpmsmash
    , contributor
    Comments (2) | Send Message
     
    I think the exec was referring to nat gas prices, not gasoline. Nat gas prices are cheaper than gasoline prices.
    27 Apr 2013, 09:52 AM Reply Like
  • wigit5
    , contributor
    Comments (4214) | Send Message
     
    Not sure if your replying to me but that's what I'm saying Nat Gas is selling for north of $4, lots of people argue that is profitable but it seems for COP $4 isn't even close.

     

    We may be seeing the industry finally admit that even $4 nat gas isn't even close to where it needs to be.

     

    I think profitability long term nat gas needs to average 5-7$ minimum
    27 Apr 2013, 11:19 AM Reply Like
  • TreyT
    , contributor
    Comments (278) | Send Message
     
    4 dollars is only profitable for a few companies in a few "sweet" spots. You won't see appreciable increases in rig count until prices go north of 5 and it looks like they'll stay there.

     

    You will see some additional drilling if prices stay above 4 or 4.25 but most of that will be experimental drilling to determine better spots to drill when prices rebound or to go HBP (though most of that is done).

     

    You could also see some minor uptick in drilling in the really good areas of a few plays. Nothing sustained until prices are closer to 5.
    27 Apr 2013, 02:02 PM Reply Like
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