Robry Supply Numbers Show New 2009 Low

A continued drop in the supply of natural gas is shown in the latest Robry numbers. The weekly number is the lowest in 2009 and the lowest since the week of Nov. 11. Clearly the depletion rate on new natgas wells are very high as production has declined 6.9% from the highest weekly production. If the rig count were flat, one could argue this was just a normal seasonal decrease. But with the dramatic decrease in rig counts, getting this production back will be difficult. In addition, there are indications that production may fall in April as some wells are shut-in.