US Natural Gas Rig Count Falls To 1-Year Low - Baker Hughes

NEW YORK (Dow Jones) - The number of rigs in the U.S. natural gas this week reached its lowest level in over a year, Baker Hughes Inc. (SBS) announced on Friday.
There were 899 gas rigs in the U.S. This week, seven from the count last week and the lowest since February 2010, the provider of oilfield services, said.
Despite declines in the 2010 low around 1000, the current level of activity continues to be seen giving strong production. Barclays Capital analysts estimated that the recount would have to fall to 800-850 to lead to decreased production.
The U.S. market has been under pressure for much of the last two years the production of unconventional shale gas fields ramps, and natural gas traders have kept a close watch on the steps of drilling activity to assess the output probable. Some analysts have predicted that drillers will pull back to limit the growth of supply and protect their profits.
Energy Information Administration in the U.S. saw her last vision gas marketed production increased by 0.8% in 2011, while consumption is expected to increase by 0.3%.
The count followed by horizontal platform, the most common type of exploit shale rock formations, was reduced by 11, to 970 this week. Analysts estimate that about two thirds of the horizontal platforms target natural gas.
"Whether one week really does suggest a trend is strong," said Gene McGillian, a broker and analyst at Tradition Energy. "I think you need to see a couple of weeks on charges of punching fall before reaching a real reaction and expectations that production will begin to be affected."
The number of directional drilling equipment for oil increased by 18 this week, to 801.
Natural gas for April delivery on the New York Mercantile Exchange settled 0.8% higher to $ 3809 a million British thermal units.

(Source: http://online.wsj.com/article/BT-CO-20110304-710474.html)