Our industry is now recovering. Drilling rates and rig utilization have reached unprecedented levels. Also, it has become more and more difficult for smaller oil and gas companies to access the capital markets for funds to invest in exploration. Another factor affecting the price of our commodity is the growing competition during the summer months between gas needed for electricity generation and gas needed to fill storage areas geared to supply winter heating needs. There are also a number of longer-term factors affecting the natural gas marketplace.
Natural gas competes directly with other fuels for some markets.
Price volatility in other fuels can reverberate on natural gas, as we have seen with fuel oil and crude prices. Producers are challenged to cope with the massive overlapping regulatory and rapid technological changes that are revolutionizing and restructuring today's international and domestic wholesale and retail markets. To better meet these challenges, our industry is undergoing a major consolidation. But the changes we are undertaking to achieve that end are difficult and painful. Just as vital is a policy climate that permits our companies to produce resources in ways that are both cost-effective and efficient.