Clearly, the impact of changes in market rates depends on the maturity and re-pricing mismatches embedded in institutions’ assets, liabilities, and off-balance-sheet positions.
The colder-than-average winter played a role in producing today’s tight supply situation as did the inability of heightened gas well drilling to significantly augment net marketed production. Canada, our major source of gas imports, has little room to expand shipments to the United States. Our limited capacity to import liquified natural gas effectively restricts our access to the world’s abundant supplies of natural gas.