Tuesday, March 17, 2009

Natural Gas Article
Here is an interesting article from Bloomberg on natural gas. To summarize, the drop in natural gas prices ($3.83 / MMBtu this morning) has caused many drillers to shut wells and halt drilling projects. This slowdown in drilling and exploration will lead to gas prices doubling by the end of the year. Ok. I hope the article is right, at least for all the marginal (or worse) oil and gas drilling programs that accepted money from investors and need high gas prices to make any economic sense. Unfortunately, these programs are still saddled with high lease acquisition and drilling costs.

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