Continued growth in production, relatively low prices, and expanded electric power sector use characterized U.S. natural gas markets in 2011. Key observations for the year include:

• Henry Hub spot prices fell from an average of $4.37 per million British thermal units (MMBtu) in 2010 to $3.98 per MMBtu in 2011.
• Marketed production grew 7.9 percent, from 61.4 billion cubic feet per day (Bcf/d) in 2010 to 66.2 Bcf/d in 2011. This was the largest year-over-year change since 1984, despite falling rig counts in 2011.
• Consumption rose from 65.1 Bcf/d in 2010 to 66.8 Bcf/d in 2011, with the electric power and industrial sectors showing strong growth.
• U.S. inventories of working natural gas in storage hit new records in 2011. Inventories reached a weekly record of 3,852 Bcf the week ending November 18, 2011.
• Net imports posted a steep decline in 2011, from 7.1 Bcf/d the previous year to 5.3 Bcf/d, and were at the lowest levels since 1992.