Natural gas companies have spent the better part of two decades exploring, mining, and expanding into new territory in order to bring in more and more of the commodity. Since the recession hit, however, prices have taken a huge dive. Most economists have attributed this fact to oversupply, leading many companies to halt exploration activities altogether.

In the Commodities Corner of Marketwatch, journalist Myra P. Saefong has shown today that the strategy is working. Seeking to “cut back on exploration and postpone new projects is finally starting to show signs of success as demand for the commodity begins to improve,” which is good news for both the industry and for the general health of the energy markets.

I think natural gas will be a huge place of growth while we wait for solar, wind, and other alternative energy forms to gain a foothold in the global market. Until then, it’s certainly the more sustainable option, and is already used in millions of homes the world over.

At the same time, this shift in production should be a good thing over the long term, saving resources for when they are more urgently needed in the future. According to Ben Smith of First Enercast Financial, an information vendor catering to energy markets, ” Today, there are half the rigs searching for natural gas in the U.S. than there were last year,” a trend which is sure to continue until prices regain their old levels.

[image via Mountain Madman]