Chris McGill Natural Gas Market Indicators

Microsoft Word - NGMI March 13 2009.doc

The natural gas market is exercising another period of price volatility, however, the price spike this time is down not up. How will this impact policy makers and what will consumers think? The current acquisition price for natural gas is dangerously close (if not already there) to not supporting the cost of replacing produced reserves. Logically, this cannot go on forever and certainly will not.

However, as the political leadership of the country considers options for our energy future, where does natural gas fit? The resource is vast, diverse and abundant but pricing presents a roller coaster of issues often not related to supply and demand fundamentals.

You can download the full Natural Gas Market Indicators, including discussion on Reported Prices, Weather, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets by visiting this link.

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