Sunday, February 26, 2012
Less natural gas rigs drilling as prices remain weak
While oil prices are rising on worries about supply, natural gas prices are depressed as supplies are plentiful. For seven straight weeks now fewer rigs are drilling for natural gas.
Last week six more rigs stopped drilling. The 710 rigs that are still drilling is the lowest number since September of 2009. There are record supplies of natural gas. The situation is made worse by a mild winter that has weakened demand as well.
The nation's second largest producer Chesapeake Energy is curtailing production by 1 billion cubic feet per day. Canada's largest producer Encana announced that it too will shut in 250 milliion cubic feet of gas output.
The number of oil rigs hit a near 25 year high a week ago but dropped slightly this last. The count is still 62 per cent above last year. For more see this article.