Energy Prospectus

ya know if one believes that oil is going lower and that would drive drilling lower it would be bullish for nat gas because of the large amount of natty production being associated with oil drilling.

Not if they move the rigs over to NG

I agree, but reduced drilling may take until the end of 2015 to have an impact. Remember, it is not the drilling of wells but completions that impacts production. There are a large inventory of wells waiting on completion today. Even if E&P companies cut back on drilling, it will be 6-12 months before production starts to decline.

IMO a cold winter (now expected) is the only thing that will keep natural gas prices over $4.00 in 2015. However, the outlook for gas prices after 2015 looks a lot better. Demand will get a major boost from LNG exports and industrial demand really picks up during the second half of 2015.

I was on a panel at U of H a few weeks ago and the IPAA guy on the panel was VERY BULLISH for gas prices beyond next week. He told me that his forecast was for gas to be around $8.00/mcf by the end of 2016.

Let me add that if drilling in the shale plays is reduced to the point that production goes on decline, it will be very difficult to reverse the decline.

* I was on a panel at U of H a few weeks ago and the IPAA guy on the panel was VERY BULLISH for gas prices beyond next week. He told me that his forecast was for gas to be around $8.00/mcf by the end of 2016. *

That is great to hear. I hope he was not smoking something.

Look forward to the December luncheons