Expanding Gas Deliverability in a Low Oil Price World: Resource Profitabilityversus Drilling Profitability

摘要

Within the context of the GRI Baseline Projection, a study was conducted toassess the relationship between average drilling charges and market factors. The study estimates a cost-based floor for drilling charges as well as the level of drilling charges at which new drilling capacity would be profitable to develop. Producer profitability is examined versus minimum cost-based drilling charges to determine if it is feasible to expect drilling charges necessary to stimulate the investment in new production capacity to meet expected gas demand.