Natural Gas Drilling to Continue to Decline in 2013

The Globe and Mail reported that the number of  active natural gas drilling rigs in North America has fallen and is expected to fall further in 2013, due to a glut in supply.

As quoted in the market report:

That dynamic no longer holds true. Energy companies have once again shifted away from natural gas production, but still face a supply problem perpetuated by their new strategy. Although gas prices are in the basement, oil prices remain relatively buoyant, with the number of rigs drilling for oil rising over the last year, in contrast to the marked decline in natural-gas rigs. Energy firms are also focusing on so-called liquids-rich natural gas plays, which produce more valuable products like condensate, butane, and propane.

To view the whole Globe and Mail report, click here.