One of the data points we monitor is the demand composition of natural gas. As per the most recent consumption data published by the Energy Information Agency (EIA) there seems to be a strong underbelly of demand building up at a time when prices are near a two decade low. Whether or not this increasing demand will manifest itself in to significant price gains for the commodity is entirely dependent on how fast the supply can keep up with the demand growth. To be safe, even if we assume that new supply will be able to offset any new demand and that prices will stay flat over time, the one thing we can certainly count on is an increase in the number of molecules of natural gas in the pipeline system in the US.
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