Despite relatively low natural gas prices and a record-setting season for U.S. natural gas storage, it would appear that producers are not shying away from their development of shale plays, judging by the latest Baker Hughes rig count.
For the week ending Dec. 3, the firm reported that horizontal rigs in search of U.S. natural gas and oil reached a new record high of 966, besting the previous record of 948, which was recorded the previous week. Horizontal rigs are often used to develop shale gas plays.
Natural gas storage levels reached a new all-time high of 3,843 Bcf for the week ending Nov. 12. As of Nov. 26, working gas in storage stood at 3,814 Bcf, according to Energy Information Administration estimates. Meanwhile, front-month natural gas futures are trading at $4.349, down 11 cents from the year-ago level of $4.459.
The number of rigs overall searching for U.S. gas for the week ending Dec. 3 increased by eight to 961, up 213 rigs from a year ago.
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