it would not surprise me to see the ng sector settle back into something more like what we saw in the 1980s or 1990s
JIM,
If that prize wise were to happen, the rig count pursuing dry NG, would rapidly approach 0. At that $ price/MCF, dry NG plays like the Haynesville, most of the Barnett and the Fayetteville would not see a single rig, a single new well. Worse Operators concentrating on these plays and utilizing Volume production contracts in those plays would either need contract relief or have little choice but to file for bankruptcy. JMHO, but a $8MM completed well, with an EUR of 5 BCF to the 8/8's, netting 4 BCF or less plus operating expenses (LOE) has little no chance of ever being budgeted going forward. Note what you are calling for(?), a Oil:Gas price ratio of >40 & ~50:1, would be an all time high. As appoint of reference that era had a ratio of ~10:1.
& the US is going to export MG to the EU, Japan & SE Asia? Post wise, I agree 100% regarding robry & your other comments(s). |
