Natural gas: Still too much of a good thing

Natural gas production finally appears to be falling off, notes federal data hounds (although Louisiana still saw an increase in production “as drilling in the Haynesville shale continued). But there’s no sugar coating it, so we might as well just jump to the money quote in this Bloomberg piece:

We have more gas than we know what to do with in the U.S., we have more waterborne gas floating around the world’s oceans that doesn’t have a home,” Stephen Schork said in an interview from Villanova, Pennsylvania. Prices this winter will “gravitate toward, and remain closer to $4, rather than $7” for each million Btu, he said.

U.S. imports of liquefied natural gas are projected to rise 34 percent this year and another 40 percent in 2010, the Energy Department forecasts, even with some pending U.S. exports of LNG.
Meanwhile, folks are still moving forward with other gas projects, like coal bed methane.