Replies to post #654 on The Rising Influence of Rising Affluence

[Democritus_of_Abdera]

Re: Drilling Despite Price Drop...

Dew,

Six months ago I was seriously considering making an investment in the gas exploration industry, but backed away when I became convinced that the industry’s “appetite for growth” would be self defeating (see #msg-41910755). (I was seriously burned by an analogous appetite for growth in the airline industry 10 years ago and am now gun-shy). So, instead I decided to invest in an industry that will profit from prolonged low gas prices (i.e. the natural gas engine business see #msg-45843851).

I continue to suspect that the natural gas producers will sacrifice profit margins to gain market share, as your post suggests (#msg-47187498).

[semi_infinite]

This is just weird .... unless the gas producers are seeing high decline rates at current producers. I talked with a consulting drilling rep in November and asked what he was seeing then and he said they were pretty much shut down on gas drilling. There is something missing in this picture.