The Energy Information Agency says after rising steadily for five years, natural gas production has flattened in the first six months of 2012. Aside from a sharp decline in October, 2008 as the economy began to collapse, the EIA says production levels increased consistently, reaching historical levels. But the agency says the decline in natural gas prices have leveled recent production.
“While production was higher for each month from January through July 2012 compared to the same month a year earlier, monthly production has remained close to its level at the end of 2011. Data for August 2012 will likely show a significant drop in average daily production as Hurricane Isaac shut in many offshore wells for several days.”
The EIA also says natural gas producers are moving away from tapping methane, and instead investing in the higher priced natural gas liquids like propane and ethane.