The year-long rise in prices is good news for producers, said Bill Stevens, executive vice president of the West Central Texas Oil and Gas Association, but it may not be enough to encourage the average producer to hit the fields, drilling new wells.
Less supply equals higher prices.
The bitterly cold snap in the Northeastern United States gave prices an upward push. More demand equals higher prices. The local consumer is beginning to feel the effects. We are seeing a fair amount of drilling picking up. The infrastructure has deteriorated.