In the past week I thought we'd start to find a higher bottom for natural gas. I checked the price just now and it was like that old beer commercial, were all that is said is: DUDE?!! ha...I guess they open the Gulf back and that makes NG freefall again. Think about this, it costs 87mil for BP's Deep Water Cluster #$%$ and from this well they're flarring off 43mmcfd/e...At the same time a Haynesville/Bossier Shale well cost 8.3mil (average) and produces 7-10 bcf/well. One of the operators in the Haynesville said that they would break-even at $4 ng in the H.S., they're not talkin wellhead price either...
The Pickens Plan is "supposed" to pass this year and give us a solid bottom for Natural Gas prices and a shot in the arm of the smaller operators in the less productive fields in North America. Between the infrastructure jobs the Pickens Plan would create and the additional rigs back drilling from higher NG prices, how does this not get done?