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Drillers need $5 to return to gas

United States gas prices will have to rise to around $5 per million Btu (MMBtu) to lure drilling capital out of liquids-prone areas and back into dry gas plays, according to Devon Energy Chief Executive John Richels.
By Conway Irwin 17 April 2012 Americas / Companies & Finance 0 9116

United States gas prices will have to rise to around $5 per million Btu (MMBtu) to lure drilling capital out of liquids-prone areas and back into dry gas plays, according to Devon Energy Chief Executive John Richels.

Devon’s gas production is expected to remain flat this year, as the company channels all of its $6.1-$6.5 billion exploration and production capital towards liquids prospects, Richels told analysts at the Independent Petroleum Association of America’s Oil and Gas Investment Symposium on Monday. Devon’s gas production will decline slightly...