Natural gas market indicators

May 13, 2009 by Chris McGill · 1 Comment, leave one of your own
Filed under: Natural Gas

Recent prices for natural gas have strengthened but it hasn’t occurred in a vacuum. World oil prices have led the way on expectations of global economic improvements in late 2009 and 2010. An overall review of current U.S. gas supply shows a curve that is beginning to indicate a downward trend; however, most of the change has come in the form of import reductions from Canada. Domestic production declines will happen as time passes given reductions in drilling activity and budgets – that is a fact.

What is unknown is how rapidly the large volume market for industrial consumption of natural gas will rebound. With that said, many analysts believe that the market price for natural gas still has room at the bottom to fall given high storage inventories, lackluster demand and a relatively strong supply position compared to potential summer demand.

Visit this link to download the full Natural Gas Market Indicator. Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

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One Comment on Natural gas market indicators

scooter griffin on Thu, 14th May 2009 7:39 pm

I’m here in the middle of the Bossier/Haynesville Shale Play and more and more horizontal wells are receiving attention due to their 20MMCFPD IP’s. Speculation abounds that British Gas “BG” is on a buying spree for Domestic Producers in the Bossier/Haynesville/Marcellus/Eagleford/…. Shale Plays (Barnett Shaled-out). Further to this speculation has BG in various stages of Due Diligence on Penn Virginia, EXCO, Encore, GMX, Petro Hawk and Chesapeake. Supposedly BG will buy up to a 50% position in each. Smart folks at BG if this is really is going on!!