In the United States, natural gas is having quite a year. Year-to-date, Platts unit Bentek Energy data shows natural gas production has averaged 72.4 Bcf/d, a 5.2 Bcf/d, or almost an 8% increase, from a year ago. This growth is impressive itself, but what makes it even more impressive is the growth has come while prices have been depressed and demand has lagged. For example, year-over-year: • Platts assessed spot prices at Henry Hub in June have averaged $2.65/MMBtu, which is more than a 40% decline from a year ago, when the June 2014 price average month-to-date was $4.59/MMBtu. • Baker Hughes shows US natural gas drilling rigs have fallen by nearly a third, from 320 to 222. • Baker Hughes shows US oil drilling rigs have fallen by over half, from 1,536 to 642. (This is important because associated gas from crude oil wells account for about for […]