Nat Gas: This Stubbornly Resilient Supply
Richard Zeits, Seeking Alpha
The second quarter was brutal to North American natural gas producers. The NYMEX natural gas price averaged $2.22 per MMBtu, dropping further from the already sub-economic $2.74 per MMBtu average in Q1 and sending a powerful economic pain signal to the operators to reduce output. One would expect a sharp supply response to follow immediately. Indeed, the gas-directed rig count has continued to shrink at a fast clip, dry gas budgets have been cut across the industry almost to the bone, and many operators have implemented sizeable production shut-ins and/or postponed well completions....http://seekingalpha.com/article/802591-natural-gas-this-stubbornly-resilient-supply
The second quarter was brutal to North American natural gas producers. The NYMEX natural gas price averaged $2.22 per MMBtu, dropping further from the already sub-economic $2.74 per MMBtu average in Q1 and sending a powerful economic pain signal to the operators to reduce output. One would expect a sharp supply response to follow immediately. Indeed, the gas-directed rig count has continued to shrink at a fast clip, dry gas budgets have been cut across the industry almost to the bone, and many operators have implemented sizeable production shut-ins and/or postponed well completions....http://seekingalpha.com/article/802591-natural-gas-this-stubbornly-resilient-supply
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