Monday, March 9, 2009

Perspective on the US natural gas supply & demand from Bentek

Follow this link to view a presentation (*.pdf) by Bentek, an analysis company that tracks natural gas supply/demand trends. The presentation reviews the current state of US natural gas supply and demand - ending with following conclusions:
  • 2008 belied the notion that the US is running out of natural gas.
  • The US is long supply; prices will continue to fall.
  • Regional pipeline constraints exacerbate the bear trend.
  • REX East will have limited impact on Rockies prices – it is already full.
  • SE Supply Area gas will keep CA prices stable.
  • Exploration activity must fall by over 20% in the Rockies and the Gulf for production to fit within capacity.
  • Additional capacity will be needed in the Rockies, Gulf and Appalachia, but before new capacity can be profitable, demand must grow significantly .
  • Constraints will set the minimum and maximum price for gas.

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