Crash in NatGas Price Likely Means Cut in New M-U Drilling

The NYMEX Henry Hub futures price closed lower once again yesterday, at $1.92 (down a nickel from the previous day). These are prices we haven't seen in three years. The current crash in price is prompting analysts to speculate (with good reason) that it will result in less new gas well drilling in gas-focused plays, including the Marcellus/Utica and the Haynesville. However, gas volumes won't necessarily decrease, corresponding to less gas drilling. Why? Because oil is all the rage right now. With more oil drilling comes more associated natural gas production.

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