Energy Solutions, Inc. Releases Natural Gas Price Outlook: Projects Significant Price Weakness in Early 2013
November 19, 2012 - Verona, WI
Natural gas prices are expected to fall below $3 per MMBtu in early 2013 as improved drilling rig efficiencies, lower operating costs, high production yields and new pipeline infrastructure keep production on the rise. According to Energy Solutions, Inc., a leading provider and publisher of information on natural gas markets and prices, producers are unlikely to significantly curtail drilling efforts in 2013 because of high rates of return and the race to reach new markets, particularly in the Northeast.
The use of horizontal drilling technologies in massive shale plays has caused overall operating expenses to decline. Since 2007, the number of days to drill a well has been cut in half, while the number of wells a single drilling rig can drill each year has doubled. Additionally, producers can supplement their natural gas revenues through the sale of natural gas liquids and the production of associated gas, improving overall profitability.
By 2014, however, natural gas production growth does show signs of slowing. Meanwhile, the abundance of natural gas supplies puts the United States on a path to become an exporter of liquefied natural gas (LNG) in the near future.
Natural Gas Price Outlook evaluates all of the above factors and identifies specific price ranges for 2013-2015, noting a tightening natural gas supply/demand balance puts upward price pressure on natural gas prices, but the days of double-digit prices, like those seen in 2008, are not expected in this decade.
Energy Solutions Inc.'s analysis, Natural Gas Price Outlook, provides an in-depth, comprehensive examination of the current U.S. natural gas market. Expected changes and the resulting cost implications on natural gas prices over the next 24-36 months are thoroughly reviewed. Natural Gas Price Outlook details why the active drilling rig count is no longer an accurate measurement of production levels, the changing role of storage fields and how the cost benefits of shale production have changed a producer's expectations and perspectives on the natural gas market. In addition, Natural Gas Price Outlook discusses the timing and extent of seasonal cycle price moves, the dangers of high-frequency trading, the growing correlation between coal and natural gas prices, and why the end of 2013 will become a turning point for natural gas prices.
Energy Solutions, Inc. provides straightforward, timely information on natural gas markets and natural gas price trends. We are not a buyer or seller of natural gas; our advice and recommendations are unbiased. Providing businesses the tools needed to make crucial decisions to protect their bottom line and improve their competitive edge, Energy Solutions, Inc. sorts through the "noise" in the natural gas industry, bringing pertinent information to your attention, saving you time and money.
Natural Gas Price Outlook is available at a discounted rate of $249 through November 30, 2012. For more information, to view an executive summary or to reserve your copy, visit www.NaturalGasOutlook.com or call (608) 848-9589.
E-Mail: Email Contact
Tel: (608) 848-6255
Fax: (608) 848-6256