Energy Solutions, Inc. Releases Natural Gas Price Outlook, an In-Depth Analysis That Supports $4-$6 Prices Through Mid-2011

Growth in natural gas production has driven prices lower. However, better utilization of natural gas drilling rigs and lower service costs have allowed producers to still capture profits. In addition, global liquefied natural gas (LNG) supplies have surged, additional storage capacity is under construction, and the price correlation between natural gas and crude oil has collapsed. "It is an entirely new marketplace for natural gas," says Valerie Wood, President of Energy Solutions, Inc. "History is no longer a valid benchmark for measuring the competitiveness of natural gas prices. Companies that base future buying or selling decisions on historical price levels are likely to be very disappointed."

In Natural Gas Price Outlook, Energy Solutions, Inc. identifies a new natural gas competitive price benchmark and explains why historical price levels are irrelevant. Topics discussed in the analysis include natural gas production levels, storage capacity, demand projections, LNG imports, relationships to the U.S. Dollar, crude oil price correlations, pipeline transportation costs, and climate change legislation.

“Producers and sellers must recognize that quick, lucrative natural gas prices rallies may be a thing of the past, and therefore, opportunities to hedge the sale price of production should not be dismissed,” says Wood. “Conversely, lower prices may cause natural gas buyers or end users to become complacent and that is dangerous. The current position of the speculative sector could lead to a surprise rally, so natural gas buyers should still be proactive to insure budget protection. Natural Gas Price Outlook explains why long-term buying opportunities are more prevalent in the first and third quarters, and it even identifies why a long-term buying opportunity is very near."

Natural Gas Price Outlook provides price guidance to both buyers and sellers of natural gas and is available at a cost of $99 through March 31, 2010. Reserve your copy at www.naturalgasoutlook.com.

Formed in 1996, Energy Solutions, Inc. is independently-owned. With more than 50 years of experience, our team focuses on natural gas prices and in helping businesses improve their internal processes as it relates to the purchase or sale of natural gas.