OGJ Newsletter

05/28/2012
GENERAL INTEREST — Quick Takes Analyst sees natural gas prices below $3/MMbtu Natural gas prices are expected to hover below $3/MMbtu for 6-24 months, primarily bouncing between $1.75/MMbtu and $2.50/MMbtu, David Cunningham, managing director of Tudor, Pickering, Holt & Co., told a Mayer Brown LLP energy conference on May 23. "Long term, we see the price at $5/MMbtu," Cunningham said, referring to average prices on the New York Mercantile Exchange in 3-5 years. He noted that gas producers are getting more efficient and lowering their costs so future break-even levels could move lower. Currently gas production is not economic because the break-even point for most US gas bas...
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