Growth in prices for U.S. natural gas remains inhibited by fuel-switching capacity, slow growth in non-weather-related demand, easy ramp-up production capacity from shales and that North American gas supply is mostly a stranded asset. But new industrial demand, LNG-export capacity, exports to Mexico and other developments in the coming few years should make new markets for U.S. producers' supply.
- Greg Haas, director, integrated oil and gas research, Stratas Advisors.
U.S. oil rigs rose eight to 373 this week, while gas rigs rose one to 97, according to Baker Hughes.
Oil prices have rebounded to the highest levels in about two years, helped by restraint on supply by OPEC and allies.
Oil production in Texas rose to a record 5.27 million bbl/d, the EIA said, while North Dakota also reached a new high of 1.47 million bbl/d.