Not gonna build many rigs on 4 dollar gas with 8 dollar cost. However drilling cost are diving, but because so many ar laid diwn. While CHK may say they are gonna drill, I see more rigs going down. This down turn will affect every aspect of the business. Wells need pipelines, compressor stations and processing plants. If this downturn last into summer, and you can go into survivor mode, coming out on the other end of it will be profitable.
Read this article:
http://www.theoildrum.com/node/5169The problem will be bringing qualified workers back into this industry. Me, I have heard about this guy called John Galt.
Anyone heard of him?
Who is John Galt?