Lower US gas prices not leading to production cuts: FERC staff

Lower US gas prices not leading to production cuts: FERC staff

Washington (Platts)--19Oct2006

There is "no large-scale evidence" that US natural gas producers are
shutting in production in response to lower market prices, Federal Energy
Regulatory Commission staff said Thursday.

In a winter fuels outlook presented to commission members, staff said
that while production levels are "hard to track," its research has shown that
there is "not much in the way of large, organized production shut-ins."

Current front-month NYMEX gas futures prices are about $7.50 lower
than last year's levels, which ranged from $13/MMBtu to $14/MMBtu. Futures
prices in late September fell below the $5/MMBtu mark before rebounding this
month.

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