"With the rapid development of the shale plays across the U.S., there was a massive influx of lease purchases which drove companies with cash into a bidding frenzy," said Ryan. (Neal Ryan, managing partner at Ryan Oil & Gas Partners LLC.)
"Now many of those companies are being forced to continue drilling plans formulated for a much higher market price in order to protect those lease investments," he said.
That's "a dangerous spot to be in because the domestic market doesn't need this gas right now, but companies are stuck having to protect their capital investment," he said.