Wednesday, August 26, 2009

Curtailment

Get used to the word.  Yesterday, Newfield Exploration Company announced that it will voluntarily curtail approximately 2.5 Bcf of its thrid quarter natural gas production from its Mid-Continent operations.  This represents about 1% of production, so it's a token amount.  The curtailment will come from delaying completion of approximately 30 wells in the Woodford Shale until prices improve.

Given the over-supplied and under-priced natgas environment, this curtailment probably won't be the last we hear of before winter, voluntary or not.

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