According to the World Bank, as of November 2012, the increased gas production due to horizontal drilling and hydraulic fracturing in the US had driven US gas prices down to 29% of natural gas prices in Europe, and to one-fifth of natural gas prices in Japan. Lower natural gas prices in the US have encouraged the replacement of coal- with gas-fired power plants, but have also discouraged the switch to renewable sources of energy. Facing a supply glut and consequent further price drops in 2012, some large US gas producers announced plans to cut natural gas production; however, production rates rose to all-time highs, and natural gas prices remained near ten-year lows. The high price of gas overseas has provided a strong incentive for producers to export it.
