Monday, August 31, 2009

Natural Gas Production Still Increasing

The EIA publishes monthly data on natural gas production in the US. Contrary to what you have been hearing in the press, natural gas production has not been shut in or decreased, on the contrary, it is still growing.

Please take a look at the monthy dry natural gas production data:

(please click on images to enlarge)

The average production in 2009 so far has been 1,752Bcf/mo, which is 10.8% higher than the average since 1995!

The chart below shows this graphically:

Note how the curve has been steeply increasing after 2005/2006. Extraction efficiency has been increasing, particularly on shale wells.

This will come in very handy the next time an expert tels you that the number of rigs is going down.

It will be soon time to revisit our natural gas straddles, please see our advisory warning, nat gas prices to fall below $1.

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