Natural Gas Supply\Demand

[dan_s]

I´ve not seen any indication that more capital is being allocated to drill in the dry gas plays. There is a lot of "associated gas" with the oil wells being drilled in the Bakken, Eagle Ford and Permian, BUT natural gas supply\demand is sure to be much tighter heading into the coming winter months. By the end of July gas should be over $4.00 and on its way to $5,00 by mid-December.

* According to Baker Hughes data from June 14th, 2013, the U.S rig count for this week is 1,771 rigs exploring for or developing oil or natural gas. This number represents an increase of 6 rigs compared to last week, with oil rigs up 7 to 1,413 rigs, gas rigs down 1 to 353 rigs, and miscellaneous rigs unchanged at 5 rigs. Compared to last year the 1,771 count is a decrease of 200 rigs, with oil rigs up by 8, gas rigs down by 209, and miscellaneous rigs up by 1.

* Canadian rigs increased by 24 to 176 rigs this week, with oil rigs up 26 to 126 rigs, and gas rigs down 2 to 50 rigs. Compared to last year the 176 count is a decrease of 72 rigs, with oil rigs down by 72 and gas rigs unchanged. International rigs decreased by 18 to 1,283 rigs last month, an increase of 58 rigs from a year ago.