From the last quarterly report;
"Natural gas production in the United States has remained strong despite reduced drilling activity over the past two years.
The United States natural gas storage levels as at October 7, 2011 were 2% above the five-year average and 2% below
storage levels of a year ago. This also strongly influences Canadian activity since Canada exports a significant portion
of its natural gas production to the United States. The increase in oil and liquids rich natural gas drilling in areas like
West Texas, Bakken and Eagle Ford has resulted in the United States oil rig count as at October 14, 2011 to be 55%
higher than it was a year ago. Precision has more equipment working in oil related plays than at any time in the last 20
years, while approximately 30% of Precision’s active rig count is drilling for natural gas targets."
"With high storage levels, consistent production and the view that North America has an oversupply of natural gas,
natural gas prices have remained at relatively low levels. To date, customer changes in natural gas drilling plans are
reflected in a decline in the rig count targeting dry gas plays. If low natural gas prices continue, Precision and the
North American drilling industry could see a further reduction in demand for natural gas drilling. With the current
demand for oil and liquids rich natural gas drilling, Precision believes further reductions in natural gas directed
drilling would continue to be mostly offset by increases in oil and liquids rich natural gas drilling."