2012 Forecast: U.S. gas well count declines as majority of rigs drill for oil ///
Henry Hub spot gas prices fell about 9% in 2011, to just short of $4/Mcf, reaching the second lowest annual average price since 2002. This drop has continued and accelerated the shift toward liquids-rich drilling, with the number of rigs targeting gas dropping 12.3% since 2010. For the first time since 1993, the oil rig count in North America has overtaken the number of rigs drilling for gas. Accordingly, the number of active, producing U.S. gas wells dropped 7,829 (down 1.6%), to end 2011 at a total of 485,705. This compares to a 2010 year-end total of 493,534 gas wells.
Log in to view this article.
Not yet a subscriber? Get started now for immediate access to this content and more.