Reassessing Gas Supply Growth Potential

The supply of gas has been increasing significantly, leading to a delicate balance between robust demand and ample supply. The risk of a supply hiccup could swiftly tighten the market, potentially erasing the existing arbitrage where US gas prices are much lower compared to global prices. Despite previous growth, current analysis suggests limited potential for further growth in shale basins like Marcellus and Hanesville due to geological constraints and low price feasibility for drilling. The Permian Basin, famous for associated gas production, is facing challenges as oil production has peaked and is declining. Overall, the outlook for sustained growth in gas supply is uncertain.