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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: sammaster who wrote (64280)	5/13/2006 8:38:50 PM
From: Sweet Ol	Read Replies (1) \| Respond to of 206325

how likely is it that natural gas producers will cut back production if prices fall lower? seems like the smart thing to do if as an executive of a gas company you truly believe that natural gas will be harder and more expensive to come by in future years... This decision will be different for different companies. It depends greatly on their cash flow requirements, debt service and their time horizons. The old oil guys used to say that a barrel you left in the ground would not come back up in your lifetime. Before we had a lot of underground storage it was common to shut in gas wells when prices were low. Also, work-overs, compressors, in-fill drilling and other expenses are often deferred, thereby reducing production, but not necessarily net profits. In sum, it is not a simple answer. Best to all, JRH

To: sammaster who wrote (64280)	5/13/2006 8:42:15 PM
From: quehubo	Respond to of 206325

I think many will be forced to cut back as local pipelines and storage fill. If I was an owner of a property and forced to sell on spot for $5 or wait until the next $10 month I would scale back some.