News / Business
Natural Gas Pricing Analysis for 2009 and 2010
In its most recent analysis, Energy Solutions, Inc. identifies why businesses should prepare for a long-term natural gas buying opportunity that could extend into 2010 and possibly even longer.
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 that will extend into 2010. In its analysis, Natural Gas Prices: A Fundamental Outlook, 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.
Natural Gas Prices: A Fundamental Outlook is an easy-to-read summary of today’s and tomorrow’s natural gas market conditions. The analysis also touches on how the pricing outlook for natural gas may change under the Obama Administration. This insightful analysis was recently featured as just one of many topics in 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, along with the historical seasonality of the first quarter decline, is sending a signal 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 is just one reason why businesses 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 Natural Gas Prices: A Fundamental Outlook or to learn more about The Advisor, send your request to request@energysolutionsinc.com, call (608) 848-9589 or visit http://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.
