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

To: Sharp_End_Of_Drill who wrote (120306)	5/1/2009 9:42:31 AM
From: Sharp_End_Of_Drill	7 Recommendations Respond to of 206114

Here is a link to the article I mentioned, Haynesville Sizzle Could Fizzle: freerepublic.com You can see the author comes up with $9 gas HH spot to break even if reserves are 2.5 bcf per well, or $12 if reserves are 1.5 bcf. He makes these calcs using Barnett depletion rates. This tells me prices need to come up quite a ways to keep shale drilling going. That will attract LNG which will tend to put a cap on prices, especially so once Exxon really gets rolling with Ras Laffan. Interesting dynamics, my main interest is what onshore rig utilization will be required.