Third, the entire exploration and production sector is shifting gears to the search for liquids as a result of the low natural has pricing -- natural gas liquids and oil most importantly. Yet the horizontal well drilling techniques enabling the search for liquids find a lot of what is referred to as "associated gas" as part of the hunt for oil. According to one Wall Street estimate of the Eagle Ford drilling region -- one of the most popular liquids rich plays right now -- an Eagle Ford well produces 4 times the gas of a conventional Barnett vertical well. In effect, this means it would take a crash in oil prices to slow the production of natural gas. The decline in natural gas prices alone won't do it.
The Catch-22s Keeping Nat Gas Stocks in the ICU
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