Drill, baby, drill?
“Reports indicate that oil and gas output was mainly steady during the past six weeks, with output expected to remain at current levels in the near term. Companies not participating in Marcellus shale drilling, a largely untapped natural gas reserve, see the industry slowing down during the next several months due to slumping gas prices. Nonetheless, some gas producers reported increasing their capital outlays for additional drilling [emphasis ours]."
- Federal Reserve Bank Beige Book
October 20, 2010
“Through development activities to date in the Marcellus and Eagleford shale plays in the U.S. onshore, Anadarko now estimates its acreage positions in these two fields hold a total of approximately 1.5 billion BOE of net risked captured resources. The positive results to date provide additional assurance that the company can attain a 60 percent compounded annual production growth rate over the next five years from these shale assets.”
- Anadarko Third-Quarter 2010 Highlights
November 1, 2010
Despite reports — too numerous even for that Chinese supercomputer (Tianhe-1) to tally — U.S. gas producers have not given up on drilling. Thus, whether we are talking about anecdotes from the Fed or earnings statements from one of the largest gas producers in U.S., the bottom line is clear; sub $4 natural gas is not low enough to stem onshore production, i.e., shale.