News / Business
The Price Impact of the Natural Gas Drilling Rig Decline
In its most recently monthly edition of The Advisor, Energy Solutions, Inc. explains what is unique about the current drilling rig downturn and why natural gas prices may remain at lower prices even after the economy starts to rebound.
The natural gas drilling rig count could fall by 50 percent from the record highs of September 2008. Historically, a drilling rig decline of that magnitude will result in a supply shortfall, which in turn causes a price rally. However, the drilling rig downturn this time is very unique. In its February edition of The Advisor, Energy Solutions, Inc. provides a detailed synopsis of the current natural gas drilling rig count decline, through history and forecasts, and explains why the current drilling rig decline is very different from what has occurred historically.
"The major difference between today's drilling environment and the one that existed during the last major drilling downturn is the use of a new technology called horizontal drilling," says Valerie Wood, President of Energy Solutions, Inc. "This new technology is resulting in production increases that aren't going to be curbed quickly. Anyone involved in the purchase of natural gas needs to be educated on the price impacts of the drilling rig downturn because it will impact budgets for many years," says Wood.
To view the full article on the drilling rig count decline and its impact on natural gas prices, sign up for a free 30-day trial to The Advisor. Go to www.energysolutionsinc.com.
The Advisor is newsletter specifically written for businesses as an educational tool and guide about the natural gas industry. It keeps companies alert and aware of ever-changing conditions and costs associated with natural gas to help them make intelligent gas purchasing decisions. The Advisor is written by Valerie Wood, President of Energy Solutions, Inc., a company that specializes in helping manufacturing companies and larger users of natural gas more cost effectively purchase their natural gas supplies.
“Remember, knowledge is power," states Wood. Be informed. Visit www.energysolutionsinc.com.
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About Energy Solutions, Inc.
Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 25 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.
