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BG Group To Cut US Shale Gas Drilling

Dow Jones -- U.K. energy firm BG Group (BG.LN) proposes to scale back 80% of its planned U.S. shale gas drilling activity for this year in response to a sharp fall in prices, the company's chief executive said Thursday.

We now plan to have eight rigs in operation this year from 35," said Chief Executive Frank Chapman, who added that the move was directly related to the sharp fall in U.S. natural gas prices. New extraction techniques that allow producers to unlock previously untouched shale gas fields have led to abundant supply, pushing down prices to a decade low.

Natural gas for March delivery was recently 0.5 cent lower at $2.467 a million British thermal units on the New York Mercantile Exchange. U.S. natural gas stockpiles stood at 2.966 trillion cubic feet last week, more than 25% above the

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Submitted Feb 09, 2012 By: johntxx

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dgerst Champion Author South Carolina Posts:1,041 Points:225,265 Joined:Aug 2008	Message Posted: Feb 9, 2012 9:02:09 AM Ignore dgerst Report Abuse You think its because BP has gained some scruples as far as polluting the environment? Not!! They have scaled back because there is not enough money in it for them. Vulture might be the better description for BP. They are only in it for the money.
Cakes77 Champion Author Harrisburg Posts:3,499 Points:1,332,255 Joined:Aug 2006	Message Posted: Feb 9, 2012 8:24:26 AM Ignore Cakes77 Report Abuse Sure- the price is too low now.
Joeski1 Champion Author New Jersey Posts:7,479 Points:1,381,735 Joined:Dec 2004	Message Posted: Feb 9, 2012 8:18:45 AM Ignore Joeski1 Report Abuse if i read it right... there's no money to be made drilling right now because of low prices and an over supply of unnnatural gas.... so what the fossil foolers need to do.. is come up with an industry that uses that product... history shows that oil was originally a waste product from another type of mining... can you guess?? the big wigs needed a cheaper product to replace whale oil.... which was getting terribly expensive due to the plunder of over-whaling and it was up to Drake to be the missing link by drilling the well.... in which state of the US? (hint: it wasn't Texas)
jrschl Champion Author Louisville Posts:1,142 Points:321,585 Joined:Jun 2011	Message Posted: Feb 9, 2012 8:03:23 AM Ignore jrschl Report Abuse This is a load. If they aren't getting their returns they manipulate other factors to continue record profits.
grandpadon28110 Champion Author Charlotte Posts:2,908 Points:785,135 Joined:Sep 2008	Message Posted: Feb 9, 2012 7:42:09 AM Ignore grandpadon28110 Report Abuse Keep on drilling.
johntxx All-Star Author Texas Posts:708 Points:257,950 Joined:Aug 2011	Message Posted: Feb 9, 2012 7:29:47 AM Ignore johntxx Report Abuse When prices get too low, it's not cost effective to continue exploration--too high the consumer cuts back on usage. We need balance in this industry--both for oil & gas. [Edited by: johntxx at 2/9/2012 7:30:47 AM EST]