As natural gas prices hit record lows in the U.S., Stratfor provides an excellent overview on the current state of the shale gas industry and its future.
Natural gas prices have now plunged so low there isn’t a significant player in the market who is even drilling for unassociated natural gas. What new supplies are coming on line are almost wholly associated natural gas produced as part of shale oil development efforts…Stratfor sources in the industry estimate that upwards of 40 percent of total natural gas production in the United States is now, in essence, a waste product…
The upshot? Buy Australia natural gas industry, sell Russia.
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