Gas Production Weathers Storm Of Low Prices

We expect US natural gas production to continue growing in 2012, albeit at a much slower rate than in 2011. While we have revised down our forecasts, we do not see a contraction in the growth rate of natural gas production. The slow-down is primarily the result of a ten-year low in natural gas prices which is forcing many operators to target their capital expenditure (capex) towards liquids-rich plays which can attract higher margins.

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