Tuesday, February 24, 2009
As gas producers continue to respond to the global recession by scaling back their operation in the Piceance Basin of Western Colorado, the number of rigs operating there has fallen about 63% from its peak of 102 in October to 38 at last count.
And that number is expected to drop even more as Williams this week forecast that it would run nine or 10 rigs in the basin this year, half of the 20 it had previously predicted and down from 28 it operated in 2008.
Tom Sherman, an analyst with Bentek Energy, said the plan represents a major retrenchment of the company's operations in the basin. "It's a fairly big announcement. They'd been running at the peak in the middle of October about 26 rigs, so it's a big cutback for them," he said.
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