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New York and the high 30s to low 40s F in Chicago, both key
gas-consuming cities, according to the Weather Channel's
weather.com.
The National Weather Service six- to 10-day outlook issued
on Wednesday called for below-normal readings for much of the
western half of the nation, and mostly normal or above-normal
readings in the East.
Baker Hughes data last week showed the gas-directed rig
count fell by 25 to a 28-month low of 720. It was the fifth
straight weekly decline and reinforced expectations that low
prices were finally forcing drillers to slow dry gas operations.
The share of horizontal rigs drilling for dry gas has fallen
sharply over the last two years to just 47 percent of the total
due to much higher prices for oil and natural gas liquids
(NGLs). That is down from 80 percent two years ago, according to
Baker Hughes.
While the rig count is well below the 800 level some said
was needed to slow record output, analysts said the decline has
yet to be reflected in pipeline flows. They said the shift to
higher-value oil and gas liquids plays still produce plenty of
associated gas that ends up in the market after processing.
Tighter environmental rules on emissions and relatively
cheap gas prices should prompt more demand from utilities and
industry, but analysts say it will be difficult to balance the
gas market without more serious production cuts.
PRICES: as of 9:07 a.m. EST in $/mmBtu