From article:
Marketed gas output rose to a fifth straight annual record last year, driven by shale output, which now accounts for two-thirds of total U.S. production.
"Never underestimate the Marcellus,” Mark Hanson, an equity analyst at Morningstar Inc. in Chicago, said by phone May 6. “Hypothetically, if gas goes to $3.50 tomorrow, the Marcellus becomes an insanely attractive play. It would only take 15 or 20 more rigs to ramp up production in a meaningful way.”NEW YORK (Bloomberg) -- Natural gas futures have soared since March on speculation that supplies are finally falling after a decade of gains. Production numbers tell a different story.
Prices have gained about 30% from a 17-year low in March, the biggest advance for the period since 2002, as investors including Greenlight Capital’s David Einhorn bet the market would put a dent in supply. While money managers turned bullish on the fuel last month for the first time since 2014, government forecasts show output climbing for the next seven quarters. Explorers including Cabot Oil & Gas Corp. and EQT Corp. outpaced their own production outlooks.
Drillers are beating estimates as the price collapse forced them to become leaner, producing more fuel with the fewest rigs since at least the 1980s. Gas output from the Marcellus shale in the U.S. East is pushing stockpiles toward an all-time high. A rebound in crude oil prices threatens to boost supplies of gas extracted as a byproduct.
“The Marcellus is still going like gangbusters,” said Stephen Schork, president of energy consulting company Schork Group Inc. in Villanova, Penn. “We’re probably going to see some oil production rising as prices improve, which means associated gas production will also come back.”
Next-month gas futures have climbed from a low on March 3. Futures for 2017 have risen even more, surging 37% to trade above $3/MMbtu. West Texas Intermediate crude, the U.S. benchmark, has risen about 17% this year and traded at $43.62/bbl at 8:09 a.m. in New York on Tuesday.
Explorers are extracting more gas from the Marcellus formation, America’s biggest reservoir of the fuel, even as prices trade at the lowest seasonal levels since the 1990s. Production expanded 18% at EQT Corp. in the first quarter and 8.4% at Cabot. Marketed gas output rose to a fifth straight annual record last year, driven by shale output, which now accounts for two-thirds of total U.S. production.
“Cabot will be able to economically grow our natural gas production in 2017,” Dan Dinges, the company’s CEO, said on Cabot’s first-quarter earnings call April 29. “It does not take a lot of rigs and does not take many frac crews to be able to ramp our production with the quality of rock that we have.”
http://www.worldoil.com/news/2016/5/10/stubborn-natural-gas-supply-imperils-best-us-rally-in-14-yearsNatural gas production may be flattening, but sure is not declining.
https://www.eia.gov/petroleum/production/#ng-tab 
