To clarify...
Funny, Jardinero1! Fair points. To clarify:
- Profitable production is good. Unprofitable production is bad, because it can set up boom-and-bust cycles, and an air pocket in supply, among other things.
- It's good that increased shale gas production was able to offset the decline of conventional gas, and keep US gas production stable over the past two years.
- Good data is good. Bad data is bad.
- At this point supply will have to fall, so prices can rise and put producers back in the black, leading to higher sustainable production. That's good. But exporting almost-free LNG is silly, nor should we contemplate LNG exports as a form of price manipulation. I explained my concerns about LNG exports in the previous article.
