Drilling efficiency blamed for weak gas prices

This paper reports that marked improvement in drilling efficiency in recent years is a major reason for weak natural gas wellhead prices in the U.S. That conclusion comes from John P. Mahedy. Morgan Stanley and Co., New York. He told the Independent Petroleum Association of America's petroleum cost and finance committee despite the decline in Baker Hughes Inc.'s U.S. active rig count, Morgan Stanley's efficiency adjusted rig count remained steady throughout the 1980s. That's one of the big reasons a gas surplus has persisted, he the. The increase in drilling efficiency stemmed from better rigs, bits, and personnel and improved technology, mainly horizontal drilling and 3-D