Natural Gas Price Drop Could Spell Doom for Producers

Natural gas prices have continued to fall, with a mild winter and overproduction that has seen producers in the American shale patch attempt to dial down output only to have oil companies producing gas as a byproduct throw a spanner in the plans.   For commodities traders, the floor is probably around $1.50, with February prices now under $1.70 per MMBtu.  This situation prompted Chesapeake Energy in its earnings report earlier this week to announce it would reduce its drilling rigs to lower production. Natural gas futures…