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United States Natural Gas Message Board

  • gray1808 gray1808 Mar 28, 2013 1:51 PM Flag

    $5 - $6 for current leases to be profitable $7 - $8 for new leases to be profitable -- Christian Science Monitor

    The Christian Science Monitor on March 26 published an article "Do High Natural Gas Prices Mean that the Shale Boom is Ending" with projections on the prices need for profitability.

    The collapse in natural gas prices over the last 18 months has caused the natural gas producers to slash their dry gas drilling budgets to focus on liquids.

    While liquids drilling does produce some gas, the dry gas drilling budgets are not coming back until there is sustained above $5 mmBTU natural gas.

    The annual depletion rates of shale natural gas wells of 30 - 50% will impact production in 2013 and 2014. Without renewed drilling programs combined with high depletion rates for existing wells, prices are going higher.

    There is a lot of natural gas available in the US but higher prices are needed to restore industry profitability and justify continued investment.

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