Rebalanced

Analysts: Rig Count Must Fall Further to Rebalance Market

The natural gas-directed rig count has fallen by about 100 rigs from last summer’s peak, but further reductions are necessary if the market is to be rebalanced, argue analysts at Barclays Capital in a note published Tuesday. While independent producers appear to have stepped off the gas (in favor of oil), as a group they haven’t stopped their pursuit of company-level production growth, Barclays said.

March 3, 2011