Natural Gas Prices Expected To Rise

Citigroup has published a research report on Natural Gas price in response to the expectation that costs will rise. In the report, Citigroup writes "While companies will likely continue to emphasize liquids production this quarter, we expect North American natural gas production to actually outpace liquids growth, as drilling to hold acreage and to satisfy joint venture commitments persists, and as the ongoing ramp-up in liquids rich plays also contributes to natural gas production growth. We estimate total production for our coverage group increased ~1.6% sequentially in the third quarter, while North American natural gas production (onshore, offshore and Canada) is projected to be up 2.9% sequentially. However, companies have started to gradually curtail drilling in dry gas areas where drilling is not needed to hold acreage. Thus, natural gas rig count growth slowed to 3% during the third quarter from 7% in the second quarter. Further, the rig count actually declined in several dry gas plays (Haynesville, Barnett), while surging in liquids rich plays (Granite Wash, Marcellus, Eagle Ford)." Companies related to this article include: Apache Corporation APA US$130.00 Andarko Petroleum Corp. APC US$74.00 Chesapeake Energy CHK US$26.00 Canadian Natural Resource CNQ US$40.00 Devon Energy Corporation DVN US$68.00 EnCana Corporation ECA US$28.00 EOG Resources EOG US$110.00 Petrohawk Energy Corp HK US$19.00 Noble Energy NBL US$74.00 Newfield Exploration NFX US$60.00 Nexen Inc. NXY US$25.00 Range Resources Corp. RRC US$40.00 Southwestern Energy SWN US$40.00 Talisman Energy TLM US$20.00