The price for oil at the start of trading today is $80 which is 20% below the June price. The two questions everyone in the energy industry is asking: How low will it go and when will it rebound. The key issue for the U.S. energy market will be the impact on drilling for oil in the major shale plays – Eagle Ford, Permian and Bakken. Will rigs be laid down or will they be moved to the Marcellus and Utica to drill for Nat Gas.
The price of Nat Gas has remained steady trading in a range of $3.80 to $4.00 in spite of the somewhat mild weather in early fall. In this price range, we’ll monitor to see if rigs move from TX to the Marcellus and Utica.