WRAPUP 3-Dirt cheap natgas prices force drillers to tighten taps

Mon Jan 23, 2012 9:46pm GMT

Moreover potentially more than 2 bcf per day of gas this year produced alongside liquids will still end up in the market.

However, Chesapeake said it's production cuts in Louisiana's Haynesville and Texas' Barnett shale -- which accounted for virtually all of the 14 bcf increase in U.S. production over the past five years -- should mean lower overall U.S. natural gas production in 2012 than in 2011.

The U.S. government expects natural gas production to increase by 1.4 bcf per day this year to a record 67.35 bcf per day, though it did revise down its estimate this month. (Additional reporting by Matt Daily and Eileen Houlihan in New York and Scott Haggett in Calgary; Editing by David Gregorio)

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