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Lag to ‘production effect’ seen in Rockies

03/02/2009
A substantial lag could occur in Rocky Mountain basins between the time operators idle drilling rigs until flush gas production from newer wells begins to decline, one operator said.Some in the US have forecast that the sharp drop in the rig count since fall 2008 might lead to the completion of fewer new wells, releasing less gas into pipelines and allowing gas prices to strengthen eventually at equivalent demand levels.Joseph N. Jaggers, president and chief operating officer, Bill Barrett Corp., Denver, said Rocky Mountain gas production could remain strong through 2010.Jaggers told an early February conference call that the “production effect” could lag the rig count substan...
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