Natural gas supply exceeds demand, forcing prices down

By JENNIFER CHEN

Capital News Service

LANSING – Falling natural gas prices in the state might prompt drilling companies to cut production, according to the Michigan Oil and Gas Association.

A growing supply of natural gas in the state has weakened prices, putting pressure on drillers, said association president Frank Mortl.

With dropping prices, producers are hurting, but consumers are huge winners, he said.

Michigan ranked 13th among the states in natural gas production in 2006, according to Oil Gas Michigan. Continue reading

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