The US natural gas drilling rig count has gained in 15 of the last 19 weeks after bottoming at 665 on July 17, its lowest level since May 3, 2002, when there were 640 gas rigs operating.

But the rig count is still down sharply since peaking above 1,600 in September of last year, standing at 695 rigs below the same week in 2008.

Many gas producers have scaled back drilling operations with credit still tight and natural gas cash prices hovering near $3 per million British thermal units (mmBtu), off more than 75 per cent from July 2008 highs above $13.

While drilling has dropped sharply over the past year, traders noted production has not slowed much, with recent government data showing gross August gas output in the lower 48 states up 0.8 per cent from July and 0.4 per cent above year-earlier levels.