Forbes Article - We are Headed To $8 Natural Gas
Posted: Wednesday Jul 25 1:41:34PM 2012
The author points out a lot of variables that should lead to a significant recovery in gas prices over the next several months, which would bode well for many junior producers, including Blackbird Energy.
Here is the final paragraph from the article:
"Natural Gas prices have spent all of 2012 below $3.00. Just the past three trading days, perhaps starting to reflect the fundamentals discussed herein, have seen spot prices nudge above the $3.00 level. So combine 13 year low gas rig counts, declining production levels with resultant ultralow storage injections, shut in gas production, faster than anticipated shale well declines, persistent switching from oil and coal to cheaper and cleaner gas alternatives…..Then consider unending hotter than normal summer temperatures, continued greater than normal nuclear plant outages, a hurricane or two that knocks out Gulf of Mexico natural gas production for a week or two, and a La Nina induced cold winter…….any one of these can light the fuse that pushes the tenuous supply/demand balance into cardiac arrest. That’s the chain and it’s going to lead us to $8.00 mcf natural gas by the approaching winter."