This opinion may come true but I think it only applies to future drilling. Wells already in production will continue filling the pipelines. My logic is that once the well is producing and the price covers the fixed costs the gas will not be shut in. The investment has been made. Balancing the current abundance is the move by electricity generators from coal to gas. This will take time.
Anadarko CEO says gas prices won’t remain at current levels for long
Houston (Platts)
The head of Anadarko Petroleum believes that the current window for bargain-basement natural gas prices is closing, as producers will decide they can’t economically keep drilling dry gas wells at current price levels.
Anadarko Chairman and CEO James Hackett said in Houston Wednesday that the current price deck below $3/MMBtu for natural gas will be short-lived.
“My view is that it will go up from here, based on reaction from companies cutting back on their drilling, but it won’t go to a level where people will be discouraged from using gas,” he told reporters on the sidelines of…
To echo the current pricing situation, the EIA reported yesterday that gas prices are staying below the $3 level with no upward pressure from a cold winter. In fact the mild winter adds to the storage balance. Over the coming months, if not year or more, natural gas will be the fuel bargain. Current prices are approaching the 1994 level.
