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04/02/2010

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I remember seeing the band open for Luna at the 9:30 Club in Washington, D.C

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While I was well aware of the positive impact of hedging, which allowed drillers to earn a price much higher than spot, I have come to learn about two other factors. First, some companies are drilling to learn. Experimentation in this vastly new area with technology and production techniques is anasdf investment that can help drive value in the long-run. Second, and more importantly, a lot of drilling has been done to keep leases. Thus, despite lower prices today, companies that have invested in acreage have been drilling despite seemingly poor economics.

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