Bonavista Energy Corp BNPUF

Excerpt from Forex Interview

[PaddleYourOwnCanoe]

TER: The other side of the coin is natural gas, which has been good for consumers and not so good for producers. What do you think its prospects are in the near term?

KP: The rig count has been consistently coming down, with 448 rigs drilling for gas as of last Friday. The EIA noted last week that gas drilling in Pennsylvania has declined sharply in the last few months, yet production is up. That's not surprising because these wells come on at very high rates and it takes time to see a response in the market. The high gas liquids prices early in the year supported active gas drilling in places like the Marcellus, while low gas prices caused a big decline in dry gas Marcellus drilling. But as we see from Lower-48 statistics, there is a time lag between dropping rigs and supply. The Lower-48 gas rig count has been sliding since the high in late 2008, but we are just now seeing U.S. marketed production finally leveling out. This year, average injections have been below the five-year average for all but three weeks. So we have made a lot of progress in rebalancing the gas markets and I think the lows are behind us even though storage is still above the five-year average.

https://www.forexpros.com/analysis/who's-winning-big-in-lopsided-energy-markets%20:-kim-pacanovsky-139325

FYI
The natural supply injection in the last 5 weeks when compared to the same 5 week period last year has declined by 137 billion cubic feet.