US shale gas still thriving

More efficient drilling has kept the industry afloat despite cheap gas prices. But rapid demand growth and cheap financing remain key

Just a year ago, the common perception was that the US natural gas industry was on an unsustainable path. Booming production and collapsing domestic Henry Hub prices would inevitably undermine companies' ability to keep drilling. Even as gas displaced large amounts of coal from the power generation market, the expansion in output seemed to be just too great. Yet as 2013 draws to a close the industry seems in better shape than it has in a long time. Henry Hub natural gas prices over $3.60 per million British thermal units (Btu)  are well above the $2/million Btu mark hit at the low point in 2012. Part of the reason is that demand growth has continued to mop up new supplies, although higher-co