Slumping natural gas prices cut drilling plans in Texas
By Jim Fuquay | Fort Worth Star-Telegram
The number of drilling rigs working in the Barnett Shale is holding steady for now, but most observers expect a drop of 10 to 20 percent in the next six months as producers trim their spending in response to plummeting natural gas prices.
According to RigData, there were 205 active rigs in 16 Barnett Shale counties as of last week. That's just about the average for the year.
However, some producers have said they expect to hire fewer drilling rigs in coming months.
Chesapeake Energy, one of the busiest drillers in the field, says it expects to cut its fleet in the area from more than 40 to about 33 within about a month. Quicksilver Resources plans to reduce its rigs from 14 to nine.
Another big player, Devon Energy, said it plans no changes to its budget in 2009.
The anticipated drilling slowdown in the Barnett Shale is likely to be repeated nationwide, said Richard Mason, publisher of Land Rig Newsletter in Lubbock. He said most estimates call for a 10 to 20 percent decline in the national rig count, which on Oct. 24 stood at 1,964, according to Baker Hughes, a big Houston oil-field services firm.
That would translate into 200 to 400 rigs being idled. That high number comes from James Crandell of Barclays Capital; Chesapeake Chairman Aubrey McClendon last month also speculated that 200 to 400 rigs could be without work by year's end.
Read the full story at star-telegram.com.
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