Rig Count Continues to Fall like a ROCK.

In the chart below, you can see Value's estimated Horizontal Natural Gas Rig count continues to fall.



But the Canadian rig count is also falling and more importantly is HALF what it was last year. HALF!


Ahh, but Texas will save us!---- well actually the rig count there looks even worse:


While production has yet to really fall, it MUST. You can not cut the rig count by 50% and not see an impact on production!
Are all the drilling programs worthless? Have companies really been drilling lots of dry holes?

As a result, I expect production to shortly fall to levels LOWER than 2008. The only question is when the production rolls over.
The next question is how low will production fall? Will production fall by more than 10% from January levels? That would be a 6 bcf/day fall in production by September. I think that is very possible if prices stay in the $4 area or lower.