Without early season tropical storm influences, domestic daily natural gas production remains at historically high levels. Solid demand for natural gas in the residential and commercial sectors for the first six-and-a-half months of 2011, as well as strong demand for gas to power generation in July, have resulted in U.S. demand that now exceeds last year’s record pace by about five percent.
Yet acquisition prices have remained relatively low and the current one-year futures strip is priced below $5 per MMBtu. In addition, natural gas market-center prices around the country are trending within a narrow range – prices are not wildly divergent between regions, as has been the case periodically in the past.
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