If everything that CHK says about the economics of the major shale plays is correct (all attractive at $5) AND if we can safely assume there are more to come (Eagleford, Bossier, Floyd?, Western assets) AND if the productivity of rig lines has increased as a result of improved completions (as evidenced by the lack of decline in production despite 50% drop in NG rig count and huge inventory of wells with delayed completion), what is supporting the $6-$7 NG future prices? Will we actually see sustained $6+ NG prices ever again?
Chk is undoubtedly the best of the bunch in the NG sector but I'm beginning to dislike NG in general. Am I being Chicken Little?