Sand is posting very valuable information so our local noddy RLP does have a purpose as board clown.
Marcellus rigs counts are down. So are the over all permits for future activity. Inclusive of lower cost refrac or rework drilling operations. Also, training loading for sand and other frac materials are way down for the Marcellus.
One of the prime concerns for the recent gains in natural gas prices was a flood of new production from Marcellus. Perhaps in the short term as pipe connections are finished. But with out new activity and the decline rates of typical frac operations requiring 'maintenance' active which is not happening this is falling away.
Very valuable to skip RLPs posts and just read Sands responses. This is very good information for investors in line to know.
As you know LINE is the low cost producer with excellent take away infrastructure. So it is relatively safe from radical Obama EPA regulations. It could even benefit from regulations dramatically increasing the cost of drilling for gas. There are not enough dry or liquids rigs to maintain the current production rates. Prices may go up some more but will come into significant competition with coal around $4 and change.
The real pay off in LINE is a normal economic recovery. But that at best has been delayed four years by our poor choice in this election.