Even with fewer rigs put to work, excessive natural gas production continues to weigh on the outlook for natural gas prices and the stocks of explorers working in gas fields.
Natural gas futures for April are off 5 cents today, to $2.246 per million British thermal units. There’s more optimism for next winter, with futures for December 2012 and into 2013 above $3.00, according to the Chicago Mercantile Exchange futures prices on the Web.
Alan Armstrong, CEO at Williams reiterated at the IHS CERA energy conference this week that the U.S. is running out of natural gas storage, which is at a record for this time of year due to the surge in production and warm weather weakening demand. He expects more production to get shut in, and that could mean lower profits for gas producers....MORE