USA TODAY: …The shale gas revolution swiftly changed the economics of natural gas. It prompted the industry to launch more than 100 projects in the past several years — specifically aimed at taking advantage of low prices — with investments totaling billions of dollars and 50,000 jobs created.
Not long ago, the domestic supply of natural gas was so limited that facilities were constructed in U.S. ports to import natural gas. However, fracking changed the supply situation. Now, the United States produces more natural gas than it can use. As a result, prices have plummeted to approximately $4 per thousand cubic feet.
In 2012, during the worst of the glut, the Henry Hub price dropped below $2 per thousand cubic feet. The spot price for gas is set in the New York futures market, based on trades at a Louisiana collection center known as the Henry Hub. Comparatively, the industry is generally profitable when gas is sold between $4 and $6… (more)
