Tech Advances Keep Gas Profitable, But Oil Still Top Draw At NAPE

The North American Prospect Expo, better known as NAPE wraps up today at the George R. Brown Convention Center. The convention aims to match oil and gas lease holders with investors and developers.

Chris Faulkner is CEO of Breitling Energy, an independent exploration and production firm based in Dallas. This is Faulkner’s seventh trip to NAPE. The price of natural gas has plunged since he first attended the expo, but he says there’s still money to be made.

“Since 2008, technology has pushed our ability to drill for natural gas at a much cheaper cost. So while it’s still expensive to drill, we can still make money now at $4 and $5 [per 1,000 cubic feet of] gas, whereas before it was $6 and $7 gas to break even.”

Faulkner says that liquids — in other words, crude oil — remain a much more attractive draw, with the price of a barrel trading in the high-$90 range. More than four times as many active rigs in the U.S. are drilling for oil compared to gas.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...