RE: NG Rig count down to 613 -18 from last week I read an interesting tid bit just the other day that suggested that even the current rig count (NG rigs) is not entirely accurate for the following reason... typical US mineral leases are held by production or by proof that a well is capable of production. That is not news... BUT the ONLY leases held are those that make up the DSU (drilling spacing unit)... which in turn means that a company would typically class their well as a gas well because the DSU for a gas well is typically a full section where a DSU for anoil well can be as little as 40 acres... prudence suggests that you drill for gas to preseve the elase then pay the shut in rate until the gas is economic or you decide to drill for oil. either way there is a substantial savings for a lease held by gas v a lease held by oil.
How's that for being optimistic on NG production? bear in mind this ONLY applies to US drilling...
Do with that as you choose.