RE:RE:I don't know that much about the small NG producersin CanadaI was talking Henry Hub, I should have been more explicit. The Canadian $ is weakening again as oil trades down, so that helps CA producers a little. What I was getting at is, some producers are better positioned to stand a price decline than others assuming gas pulls back from here to $2 basis HH. Such a decline would most likely turn off the production growth, everywhere. It might even result in shrinkage of production. Long haul gas would gets even worse for these guys on a netback basis as HH declines. DAWN and Chicago/Midwest could be pretty weak relative to HH by late injection season if production climbs above 80bcf/day in the U.S.. So, the question is are any going to be unable to withstand this scenario this year?
I still think the market for gas(demand) will be good regardless of supply growth through early injection season, but I think we will see a short attack on futures as soon as heating season tapers off. That happens and we break ~$2.50, you will see $1.90-$2 in short order. Natural Gas is very sensitive to supply growth of the magnitude we are seeing, these forecasts for production growth can crush the price even in the face of good injection demand.