A strong U.S. gas market signals sustained drilling for gas through first quarter 1994, laying the groundwork for continued growth in the gas industry. Seven solid years of growing gas consumption, coupled with dwindling U.S. deliverability, have brought U.S. gas supply and demand into a precarious balance. At a time when low oil prices are prompting many producers to trim oil directed capital and exploration spending, almost 4 years of consistently higher U.S. gas prices except for first quarter 1992 spot prices are sparking a modest gas industry recovery. Most noticeable has been the drilling response. ...

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