Why Does NatGas Production Keep Rising with Lower Prices?

The NYMEX futures price for natural gas recently hit a 30-month low (see NYMEX Henry Hub Crashing and Burning – Lowest Close in 30 Months). There's an old economics bromide that goes, "The cure for low prices is low prices." Meaning when prices get low enough, manufacturers (or producers, in the case of oil and natural gas) stop or greatly scale back their activity, taking inventory off the market, which ultimately drives prices higher to the point it is once again profitable to make the widget (or produce more O&G). But that doesn't seem to be happening with natural gas. U.S. gas production will hit a new all-time high this year. Why is the market not responding to low natgas prices rationally?

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