In-Depth Natural Gas Price Outlook Released

Natural gas production is expected to continue to outpace demand as the economy remains weak and natural gas demand from the industrial and electric power sectors decline.  With global natural gas demand also falling and liquefied natural gas (LNG) capacity expanding, there is a heightened potential for more LNG to find its way to the U.S., which is considered the market of last resort.  Add to this the potential for increased imports from Canada due to a reduction in oil sands production, and you have the recipe for a natural gas price collapse.

In the March edition of The Advisor, Energy Solutions, Inc. provides a comprehensive summary of today’s market conditions, however, it also warns a price collapse will likely be confined to just a few months.  The article, In-Depth Natural Gas Price Outlook, also compares the natural gas price reaction in February 2003, when minimum storage capabilities were tested, to current conditions where the potential exists for maximum storage capabilities to be tested.

“Talk of sub-$3 per MMBtu natural gas prices is increasing.  With the potential for natural gas storage inventories to test maximum capabilities this summer, natural gas buyers need to have a plan in place to take advantage of a price plunge.  However, they also need an alternative plan just in case market conditions change and the current downtrend is disrupted,” says Valerie Wood, President of Energy Solutions, Inc.  “Now is the time to be developing a natural gas strategy for not just the rest of 2009, but into 2010 and beyond.  We know this is a difficult time for businesses to predict consumption levels, but then a natural gas strategy should be developed around a smaller percentage of projected natural gas usage,” says Wood.

The Advisor is newsletter specifically written for businesses as an educational tool and guide about the natural gas industry.  It keeps companies alert and aware of ever-changing conditions and costs associated with natural gas to help them make intelligent gas purchasing decisions.  The Advisor is written by Valerie Wood, President of Energy Solutions, Inc., a company that specializes in helping manufacturing companies and larger users of natural gas more cost effectively purchase their natural gas supplies. “Remember, knowledge is power," states Wood. 

View In-Depth Natural Gas Price Outlook

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About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 25 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.