Replies to post #9395 on The Rising Influence of Rising Affluence

[DewDiligence]

U.S. NG production keeps climbing, no matter what:

http://www.wsj.com/articles/natural-gas-glut-keeps-pressure-on-prices-1444327162

Nor has plunging oil-exploration activity put a dent in gas production or supply. The Energy Information Administration reported on Thursday that gas in underground storage was near a record for this date of over 3.6 trillion cubic feet, up 14% from a year ago.

That surfeit has developed despite the fact that…the number of rotary rigs in the U.S. devoted explicitly to gas hit a new all-time low.

The culprit is productivity and efficiency. Many previously drilled wells are still being completed and areas with surplus gas such as the Marcellus Shale are getting better connections to nationwide pipeline networks. That means relief for even more depressed regional prices, but further pressure on the national benchmark, Louisiana’s Henry Hub. And, last but not least, the productivity of existing wells continues to be surprisingly good.