Raymond James: Nat gas supply "not getting the memo" about rig count
US dry gas production could grow for rest of decade: Raymond James
Washington (Platts)--22Jan2013/155 pm EST/1855 GMT
US natural gas production will continue to grow for as much as another decade, investment bank Raymond James' top oil and gas analyst said Tuesday, driven by huge production gains in the Marcellus Shale and gas associated with oil and natural gas liquids drilling.
"Now that the dry gas rig count has dropped precipitously (down 60% year over year), many energy analysts are eagerly anticipating an imminent roll-over in U.S gas supply," Raymond James Marshall Adkins told his clients in a note.
"We guess gas supply didn't get the memo because it continues to climb steadily higher," Adkins said. "In fact, our updated gas production model now says that U.S. gas supply is not likely to roll over anytime soon and could even continue growing through the rest of this decade (especially if oil prices stay anywhere near current prices)."
--this is an excerpt - google the title to read the whole article
OK, Fine then. The US shale gas industry doesn't need all the rigs if rig count doesn't matter.
They can retire the entire fleet of well drilling rigs. They can stop spending money on well drillings. Why bother spend over $125B per year to run the rigs to drill wells, if, as Raymond James says, the production can continue to grow for ten years without rigs, right. They must have invented a magic wonder which they only need to waive to create new production, right?
I do NOT believe in fairy tales. I do not believe that fairy tale that rig counts and new well drilling no longer matters in gas production.
The fact of the matter is CHK just reported a 7.3% drop of its gas production, from Q3 to Q4. That is the real truth.