This is a fascinating article on the Reuters website.  It says that some oil companies have already been completing and producing oil from their Drilled but UnCompleted (DUC) wells.  The majority of the work has been in Texas, near the oil refineries, which allows the producer to realize a price close to benchmark prices.  Some of the production has been farther away though, as some companies have their oil production hedged at high enough prices to make production profitable.

This is interesting because it means that some of the oversupply that people have been factoring into their calculations has already been used up.  We may see a bump up in oil prices based off this information.

The question becomes, are some gas producers doing the same thing?  Antero Resources here in the Appalachian Basin has all of their gas production hedged at prices high enough to make a profit.  They also have some DUCs.  Are they completing and producing their DUCs?  Are other companies?  If they are, is the price of gas going to go up sooner than expected?  It’s hard to tell, but we sure do hope so.