Gas Prices Jump as Top US Driller Slashes Output to Fight Glut
- Mild weather has sent US natural gas prices tumbling
- EQT cut production by 1 bcf per day starting in late February
A natural gas storage area in Cameron, Louisiana.
Photographer: Mark Felix/BloombergThis article is for subscribers only.
US natural gas prices surged after EQT Corp., the nation’s largest producer, said it will slash output after an unseasonably warm winter and the resulting supply glut triggered a price collapse.
EQT will curtail about 30 to 40 billion cubic feet of net production through March in response to low prices, it said in a statement Monday. That’s 5% to 7% of the company’s quarterly output, based on fourth-quarter results. Total US gas production is about 100 billion cubic feet per day, down slightly from a record earlier this year.