Re: T. BOONE PICKENS SEES NATGAS AT $4 BY END OF YEAR
<I'm personally expecting production increases durung the Oct-Dec period due to tie-ins and new pipeline capacity coming online, including the culmination of completions and gathering line extension work that took place over the summer.>
This the one wild cards ECA had in their bottoms up analysis of where production is headed.
Kind of a race between the decline curves vs fresh new supply.
The decline rate in the US is 20 bcfd/yr, with about 7 bcfd increase coming from associated gas and NGL drilling. Thaking these out the decline rate is about 1 bcfd/Month.
Dry gas driling has not gone to 0 with something like 450 rigs still drilling.