Natural Gas Price Drop Could Spell Doom for Producers

From oilprice.com

Natural gas prices have continued to fall, with a mild winter and overproduction that has seen producers in the American shale patch attempt to dial down output only to have oil companies producing gas as a byproduct throw a spanner in the plans. For commodities traders, the floor is probably around $1.50, with February prices now under $1.70 per MMBtu. This situation prompted Chesapeake Energy in its earnings report earlier this week to announce it would reduce its drilling rigs to lower production. Natural gas futures received a bump from that move, but were still hovering in the $1.66 range on Thursday afternoon, ... (full story)