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

US$130.00 Andarko Petroleum Corp.

US$74.00 Chesapeake Energy

US$26.00 Canadian Natural Resource

US$40.00 Devon Energy Corporation

US$68.00 EnCana Corporation

US$28.00 EOG Resources

US$110.00 Petrohawk Energy Corp

US$19.00 Noble Energy

US$74.00 Newfield Exploration

US$60.00 Nexen Inc.

US$25.00 Range Resources Corp.

US$40.00 Southwestern Energy

US$40.00 Talisman Energy

US$20.00