NatGas supply

North American Natural Gas Market: Supply Cuts to Offset Recent Glut?

• Natural gas price is now well below the breakeven point (estimated to be above $8/btu). The low price is influencing producers to cut drilling and could set the stage for a future spike(TOD) Below $4-5/btu production likely lows considerably
• DOE: About 45% of U.S. rigs have been shut since September, which means fourth-quarter gas production will tumble 5.2%, faster than the 1.9% decline in use,
  
• March 4: Prices that have dropped from more than $15 per million British thermal units are hovering just over $4 for front-month futures and a smaller-than-normal drawdown of stockpiles this winter threatens a summer glut. a weak economy could leave so much gas in pipelines and storage facilities some producers will be ordered to cut output. Such low prices will slam wholesale power prices because these are set by the cost of natural gas. (Lex)
• NYEF: unconventional gas supplies have been on the rise but E&P activity is going to suffer at prices below around $4.00 to $5.00 per MMBtu. Recession will weaken industrial demand. Natural gas demand may gain as new policies discourage coal use in power plants
• Credit Suisse: the near term looks bleak and it's easy to be negative on gas, but supply declines alone (13% fall from peak to trough) may cure the gas woes - natural gas has a better long-term demand outlook than oil.