Analysts at investment bank Raymond James asked a simple question last week: "How much is US gas supply going to grow over the next few years?" The answer: A lot more than the industry is expecting. "like oil, we've witnessed US natural gas supply roar higher over the past few years as new drilling and completion technologies have completely changed the landscape for shale and tight gas development. Operators are also becoming much more efficient compared to just 12 months ago resulting in much better productivity per well and recently more wells per rig," said lead analyst J. Marshall Adkins." Unlike oil, however, the dry gas rig count has collapsed over the past few years as robust oil prices have drawn E&P spending away from relatively weak US natural gas prices. The shocking revelation ... is that US gas supply is still growing despite the collapse in gas drilling."
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