Talk of production cuts seems to be holding up prices right now, but the reality is that those cuts haven't actually shown up in monthly production volumes.  Most recently, Chesapeake upped its production cut from .5 Bcf/day to 1 Bcf/day.  Yesterday, the March 2012 natural gas NYMEX contract fell $.058 to settle at $2.626 per MMBtu.  Initial projections for tomorrow's storage withdrawal range from 130-150 Bcf.  By comparison last year's weekly withdrawal was 102 Bcf and the average five-year withdrawal is 145 Bcf.

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About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned and is NOT a natural gas marketer, broker or supplier.  We are an independent, natural gas buying advisory service that provides assistance nationwide to commercial and industrial businesses in the purchase of natural gas and/or the development and implementation of a natural gas buying strategy.  

Natural Gas Price Report is a daily commentary discussing price moves for natural gas as it relates primarily to the purchase of natural gas for businesses.  Other services of Energy Solutions, Inc. include:

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Consulting:  One-on-one natural gas consulting services ranging from the development of a Request for Proposal to the supplier selection process to the development and implementation of a tailored natural gas buying strategy designed to specifically fit a company's or corporate objectives.