1. This quote is somewhat provoking for the same reasons as well:

    “I believe at least half of our gas drilling is what I would call involuntary,” outgoing Chesapeake Energy CFO Marc Rowland admitted in an earnings call last month. “It’s being incentivized by something other than the gas price…It might be the need to hold acreage… And I think that’s, in large part, true across the industry that there’s an enormous amount of drilling today that is economic. It’s just economic for reasons other than what current gas prices are.”

  2. The final paragraph from the Platts article seems particularly telling.

    As “those synthetic incentives expire, we think production costs will have to be rationalized,” he said. “At current and short-term pricing in the $4/MMBtu to $5/MMBtu range, the only areas that are truly profitable area the liquids-rich areas.”

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