To Get Drillers Moving, Analyst Says $7.50 Gas Price Required

摘要

A $7.50/Mcf natural gas price in 2010 would provide the economic impetus to lift drilling activity enough to maintain market balance, even with an anticipated 20% decline in oilfield service price deflation, SunTrust Robinson Humphrey (STRH) energy analysts said last week. However, the domestic gas rig count "should decline to 650 rigs by July and remain at about this level through year-end, implying an average gas rig count of 750-775 in 2009," analysts John Gerdes, Cameron Horwitz and Ryan Oatman said in a note to clients.