Globe & Mail: No end in sight for natural gas slump
"Did someone forget to tell natural gas that the economy is turning the corner?
Even as oil prices surge on signs that the worst of the recession is over, natural gas is mired in a bear market brought on by weak demand and excess supply..."
"Why are gas markets so glum?
The short answer is there's too much gas. Increases in gas production in recent years, principally from new shale plays in North America, have contributed to a dramatic increase in U.S. inventories.
U.S. stockpiles of the fuel totalled 2.337 trillion cubic feet in the week ended May 29, which is 22 per cent above the five-year average for this time of year.
Exacerbating the supply glut, the recession has cut demand from gas-fired power plants and industrial users. What's more, mild spring temperatures have meant many homeowners aren't turning on their air conditioners, removing a key source of demand for gas-generated electricity. "
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