The so-called boom in shale gas has yet to sustain positive cash flows for most gas producers. With Henry Hub prices started to climb north of $4.50 MBTU the prospective of a pickup in drilling is drawing nearer this year, after a very cold winter which has depleted gas in storage.
What remains to be seen is whether or not the drilling activity this summer will be sufficient to restore the flow of gas into storage, in sufficient quantities to replenish supplies before next winter. Any increase in demand (some of which is coming from a switch from coal powered generation facilities to gas fired generation facilities) will test the gas industry's ability to replenish inventory levels and provide a safe cushion for next winter's demand.