Fewer US Natgas Rigs Won't Dent Production

Tuesday, December 13, 2011

While the number of rigs drilling for natural gas in the United States has dropped to the lowest level in nearly two years, don't expect a rapid fall in record high production that could bolster prices.

But that doesn't necessarily signal an imminent drop in overall gas output, because substantial volumes of dry gas left after liquids processing still ends up in the market.

Ninety percent of the projected 2-4 billion cubic feet per day of natural gas production growth next year will come from liquids-rich plays, according to Adam Bedard, senior director at Bentek Energy in Colorado.

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