This is a pretty standard business report from Reuters. It points out that drilling for gas has dropped off a lot since the price of gas is so low and the wells that are currently producing are meeting the markets' needs.

It also points out that drilling for oil and NGL is continuing on since there is money to be made at current prices.

Most oil people know that 50% of the oil ever discovered is still in the ground. All that is necessary to get it out is some new way to get it out. This is sometimes called 'secondary recovery' but most oil producers look at it as drilling an old prospect in a new way that gets to the remaining deposits.

There are ways to recover oil. Steam flooding, CO 2 injection, etc.... But none work as good as drilling a new well and hitting the existing pay zone deposits.

In any case... I hear the Saudis are none too happy with the drilling that is taking place in the US and are saying they might cut production to drive the price of oil to $85 a bbl. and keep it there. They are welcome to do this as it will do nothing but keep the price of oil stable for years to come. Even if Iran cuts off 100% of their exports, also known as cutting off their nose to spite their face, the Saudis could take up the slack in about three days.

I buy a lot of gasoline because I love to travel by car, so stable and lower prices are fine by me!

UPDATE 1-U.S. natgas rig count slips 1 to 353 -Baker Hughes | Reuters