As the natural gas rig count has plummeted by 94% from the 2008 high of 1,604 rigs to just 89 in the most recent Baker Hughes rig count report, it is only a matter of time before U.S. production is affected.
What has been the surprising outcome in the rig count plunge has been the increase in U.S. natural gas production which reached a new all-time high of 73.8 Bcf per day (dry-gas) in February.
However, recent data suggests that U.S. production may finally be on the decline estimated at 71.2 Bcf per day, down 2.6 Bcf per day or 3.5% from the February high.
Increasing power generation demand for natural gas this upcoming summer and decreasing production could become factors which finally turn natural gas prices around later this year.
Storage, however, could overshadow these factors near term pushing the market down to a new post-summer price low.
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