Originally Posted by
dhussdawg
We just had a guy come and talk to us from PIRA, he had some interesting info.
The liquids plays (Eagle Ford, Granite Wash, and parts of Marcellus) are economically viable without Natural Gas (ie price could be 0), so they are going to keep dumping natural gas on the market because it is just gravy for them. Not surprising because the Bakken is currently just flaring their natural gas (.1 BCF per day), and it isnt quite the same thing but similar with oil products. Bakken will have pipelines in place by the end of summer to take that associated gas to some market to hook in.
PIRA was very bearish on price going forward because of all of the production.
Cheasapeake is 98% hedged on their NG production through 2011, so unless they do things to shake things up, their stock price wont move that much IMO. However, they are trying to shake things up obviously and get rid of some of their assets and acquire liquids plays.
He also gave the order of the shale burnouts, he had Barnett first (because of age), Woodford second (because of position in Oklahoma), and Haynesville third (because of quick well depletion). Haynesville does have the highest initial production by a long shot (probably due to the depth and ease of drilling).