Like every other gas price spike, I pray this is not just another bubble that will last a month or two and then go away. South Texas has been depressed since the early 80’s when gas went from $5.00 mcf to less than $2.00.
There are vast numbers of gas prospects that have never been drilled because prices wouldn’t support it. Small towns built on drilling, production and oilfield services have dried up and are now ghost towns.
If a bull market in gas materializes, it will be an answer to many prayers.
You are right. There is still a lot of gas to be found in South Texas but not at $2.25 an MCF. Sadly, not much oil until you get up to the Eagle Ford Play.