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Permalink Reply by The_Baron on June 11, 2009 at 4:24

Not a good sign for gas prices.....

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Permalink Reply by ALongview on June 11, 2009 at 4:46

Baron, when are the decline in rigs and the decline in rates estimated to make a difference? Do you think that we will have a whipsaw effect when these take hold and companies have to ramp up from a very low number of rigs or are we filling up the system enough that we will just be using excess supplies while we ramp up and prices will be more stable?

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Permalink Reply by The_Baron on June 11, 2009 at 8:18

The problem is not just on the supply side, the problem is also on the demand side.

Eventualy production will dip, and hopefully demand will pick up soon and prices will rise. But we have a long way to go, just look at where we are in terms on storage from last year when prices spiked.

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Permalink Reply by Les Bamburg on June 11, 2009 at 8:40

ALongview, most are projecting 2010 (2nd half?) before the combination of reduced rig count and higher demand will move natural gas prices back above $6.00/MMBtu.

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Permalink Reply by The_Baron on June 11, 2009 at 9:08

I'll believe it when I see it....prices could just as easily drop below $3.

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