Wells Fargo's data indicates the mean all-in costs for shale natgas is about $6.46 (see chart in link below).
We are used to seeing that kind of cost data from consultants like Berman and some academics, but not from Wall Street.
If you believe their data - and that the excess inventory and completed wells will be worked thru in a year or two - why isn't $6.50 just the starting point? The need to generate a significant IRR on risk capital, add another 10%.
We will certainly need dry gas wells to meet demand and we will certainly need the gas from at least the avg. cost producers. (Note that CHK is above avg. cost)