The rise and rise of US shale gas

Falling natural gas prices and a plunging rig count are doing little to slow the US shale-gas juggernaut

Henry Hub prices have fallen around 40% from around $4.40 per million British thermal units (Btu) in November last year to just $2.68/million Btu this week, nearing lows seen in early 2012. Prices have been even lower in areas inundated with new shale supplies. Prices for deliveries from the Marcellus shale on Tennessee's pipeline system are down to around $1.40/million Btu, according to the US Energy Information Administration (EIA). At the same time, the gas-directed rig count is falling as drillers slash capital spending. The decline hasn't been as sharp as it has been for the oil-rig count, but it continues a multi-year decline for gas drilling rigs in the US. There are now around 268 ri