The US met 81% of its energy demand in 2011,
the highest since 1992, according to data compiled by
The surge in hydraulic fracturing in shale
formations played a major role, and it has also resulted in an
oversupply of natural gas.
According to the US Department of Energy's
Short-Term Energy Outlook, by the end of October,
natural gas inventories could reach a record of 3.95 trillion
cubic feet (Tcf).
A recently released report by Five Star
Equities finds that new natural gas pipelines being introduced
later this year could add to the supply glut in the US. These
pipelines could boost deliveries from the Marcellus shale
deposit in the Northeast by as much as 30%.
Department of Energy data show that there are
approximately 1,000 Marcellus shale wells that are uncompleted
due to a lack of pipeline access.
Price Futures Group analyst, Phil Flynn,
commented, "There are new pipelines coming up, and Marcellus
gas is going to flood storage going into winter. Unless you get
a really cold winter, prices are going to be in the $2 [per
thousand cubic feet] range."