The Rig count is down over 50% from a year ago today. The rig count has effected areas stronger then others. Some areas such as the Marcellus and Haynesville areas have fared better. Gas plays are showing to be prosperous leaving the question if operators are hedging natural gas against oil prices.
Are Oil & Gas Operators Using Natural Gas As A Hedge? Check out the article by Forbes.
By Braeden Gilchrist
The US rig count is down 56% from this time last year. The rig count decline has hit some areas harder than others. For example the Bakken has lost more than three quarters of its rigs (figure 1). The Eagle Ford, Eaglebine, and Granite Wash plays also saw above average losses. Plays such as the Marcellus and Haynesville have fared better. One difference in these plays that could explain some the unbalance is oil to gas ratios. The areas faring better are gas plays. Are operators using natural gas production as a hedge against current oil prices?