Domestic production strength has asserted itself once again during the first quarter of 2010 just as heating-sensitive demand load is declining and underground storage withdrawals are moderating. U.S. drilling operations now show more rig activity than one year ago with two-thirds directed toward natural gas.
Demand-side events including strong heating load requirements at different times throughout the 2009-2010 winter heating season and a slight increase in industrial natural gas consumption for year-to-date 2010 compared to 2009 have not been able to trump general supply strength and as a result natural gas acquisition prices have been modest and even declining at winter’s end.
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