Although the number of natural gas-directed rigs has fallen by 118 from last year’s peak in August, natural gas production will continue to grow at an incremental pace according to Barclays Capital.

In its Natural Gas Weekly Kaleidoscope for the week of July 5, the investment bank stated that it does not anticipate a drop in production until Q4 2012 at the current level of activity.

“Currently, the rig count is moving mostly sideways with a slight downward bias as rigs are redirected toward oil drilling. Gas-directed drilling activity peaked ...