According to the Energy Information Administration data, US natural gas production reached record levels in March, 2011. Why? Shale gas production, plain and simple.
In March 2.42 trillion cubic feet was produced or an incredible 77.83 billion cubic feet per day. Gas output is up 11% since 2007.
And what has happened to the price of natural gas in the USA as production soars?
The price has declined 38% since 2007 and 8% over the last year.
Natural gas is just about the only commodity to have its price decline, since the economy stopped collapsing following the Lehman Brothers bankruptcy on September 15, 2008 that triggered a near depression and a collapse of the oil price to $33 per barrel in December 2008.