Natural Gas Prices: A Pricing Outlook for 2009 and Beyond

Natural gas prices have fallen substantially since the middle of summer.  No one truly knows where the bottom lies, but there are a number of indicators that point to a growing supply surplus in 2009 and possibly even 2010.  In its November edition of The Advisor, Energy Solutions, Inc. evaluates natural gas production growth, unconventional production levels, drilling rig counts, natural gas storage inventories, liquefied natural gas (LNG) imports, Canadian imports, pipeline infrastructure and the economy and then provides specific conclusions about where natural gas prices may head in 2009 and beyond.

The article, Natural Gas Prices: A Fundamental Outlook published in the November edition of The Advisor, is an easy-to-read summary of today’s and tomorrow’s natural gas market conditions. The article goes one step further and evaluates how the perceived balance of natural gas supply and demand may change under the Obama Administration.  This insightful article is just one component of The Advisor, a weekly and monthly publication that provides natural gas buyers with specific plans of action for the acquisition of natural gas supplies.

“The drilling rig count should remain at higher than historical levels even if natural gas prices continue to weaken,” says Valerie Wood, President of Energy Solutions, Inc.  “Because the price of natural gas in storage is around $2-$3 per MMBtu higher than the cost of natural gas in the open market at this time, storage inventories should remain at above normal levels into the second half of winter.”  According to Wood, these factors and historical seasonality of the first quarter decline indicate that natural gas buyers should be preparing for a potential multi-year natural gas purchase.

Natural gas buying decisions can be very challenging.  Natural gas prices move very quickly and buyers are faced with a plethora of information to sort through, and many times this information can be rather conflicting.  That’s just one reason why businesses from throughout the nation turn to The Advisor.   “We are not a buyer or seller of natural gas, so information in The Advisor is unbiased.  The Advisor is developed with the goal of helping natural gas buyers save both time and money on their natural gas purchases.  Plus, we go one step further -- we provide buying recommendations that are clearly documented and supported.  Basically, we keep an active eye on the natural gas market each and every day and notify readers of potential buying opportunities.  This helps businesses gain the peace of mind that the right decisions are being made for their company.  Remember, knowledge is power," said Wood.

For a complimentary copy of The Advisor November edition, which contains the article described above or to sign up for a free 30-day no-risk subscription to The Advisor, a publication specifically designed for businesses, call (608) 848-9589, send your request to request@energysolutionsinc.com or go directly to  www.energysolutionsinc.com 

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About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned.  With more than 50 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.