Friday, December 26, 2008

Boom In U.S. Production Drives Down Natural Gas Prices

Natural gas prices have fallen dramatically this year much like crude prices, but shrinking demand is only one culprit. The other is a gas glut from a boom in U.S. production.

"The industry is suffering from its own success in some respects," said Karr Ingham, head of Ingham Economic Reporting in Amarillo. "We’ve added a lot of natural gas production in Texas and elsewhere just because of high prices."

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