The domestic natural gas rig count as of Friday had slipped to its lowest level in more than seven years, according to a report by Baker Hughes Inc. (BHI).

According to BHI, the number of rigs drilling for gas in the United States stood at 665, which is down 57% from a high last September when more than 1,600 gas rigs were in operation. The rig count is lower now than it’s been since May 3, 2002, when there were 640 gas rigs in operation, BHI said.

The U.S. gas rig count has been in free-fall since last fall when gas prices slid almost 70% from their summer highs and access to credit markets tightened.

A forecast of a colder-than-normal winter, combined with mildly bullish gas storage figures reported by the Energy Information Agency, factored into gas futures prices moving higher Thursday to $3.668/Mcf (see Daily GPI, July 17). AccuWeather.com’s Joe Bastardi said Wednesday this coming winter may be the coldest in five years in an area stretching from Boston to Washington, DC (see Daily GPI, July 16).

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