tuj

China, Shipping and the Great Commodity Carry Trade

"But as the price falls below $10-$13 per thousand cubic feet (TCF), shale gas is no longer profitable so producers must cut back."

You have no idea what you are talking about here. Seriously, listen to the quarterly calls of the producers and see what they are saying break-even is for Barnett, Marcellus, Haynesville, etc. You are way way way off on the production costs.

Second, while NG is can be stored, there is a limit to how much gas can be stored in the US in any given season. Then add in the fact that many of those shale producers hedged their production forward at $10-13.