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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Second_Titan who wrote (3736)	11/7/2001 10:49:42 PM
From: unregmarket	Respond to of 36161

Q - storage number = 10 from nowhere left to go more than production decreases, although you are correct re: reduced production. Rick

To: Second_Titan who wrote (3736)	11/7/2001 10:50:16 PM
From: t4texas	Respond to of 36161

storage is quite full now and seems ready for the winter (unless it is a very long, cold winter). it appears all (or most) of the ng drilling last year and this year was fields with known ng available with pipeline infrastructure nearby so the producers could take quick advantage of the $5 to $10 ng prices at the time. the price has now dropped like a rock to about $3 or below $3. there just is not any incentive to contract lots of rigs for these prices. meaningful ng fields with big ng volume are going to take lots of exploration ( read money ), and i don't think that will happen until the producers are convinced they will consistently be able to get over $3.50 or $4.00 or maybe more for the ng they have to find and produce. when i see the ng futures get some upward movement, then i think we will see some osx upward movement. i just hope the next cycle they have some big ng fields to drill.