Gas Supply: Extremely Difficult to Grow
Supply unable to keep pace with demand in 1990’s and has not regained 1997 peak.
Estimate @ $3.25/ MMBtu & 730 rigs
Wellhead production from gas wells in the U.S. grew less than 1% per year, on average, in the 1990s
Prices well over $3 per MMBtu at Henry Hub would be the minimum needed to maintain flat production within current industry constraints