Natural Gas Glut Means Drilling Must Slow
KSCB News - April 9, 2012 5:54 am
NEW YORK (AP) – The U.S. natural gas market is bursting at the
So much natural gas is being produced that soon there may be
nowhere left to put the country’s swelling surplus. After years of
explosive growth, natural gas producers are retrenching.
The underground salt caverns and depleted oil fields that store
natural gas are rapidly filling up after a balmy winter depressed
demand for home heating.
The glut has benefited businesses and homeowners that use
natural gas. But with natural gas prices at a 10-year low – and
falling – companies that produce the fuel are becoming victims of
their drilling successes. Their stock prices are falling in
anticipation of declining profits and scaled-back growth plans.
Some of the nation’s biggest natural gas producers, including
Chesapeake Energy, ConocoPhillips and Encana Corp., have announced
plans to slow down.