Clearly production has been increasing and putting pressure on the price of natural gas. But the number of rigs has started to decrease and with the high natural rate of decline, production declines MUST occur. The only question is how fast production falls. In the following weeks I will be expanding this study and including more data points, prices and other factors. But this chart tells us why natural gas prices are lower today than anytime in the past 5 years. As electric demand and industrial demand have fallen, production has skyrocketed. A perfect storm for low prices.
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