Natural gas will probably stay below $5 per million British thermal units for the next few years, said Gary Evans, chairman and chief executive officer of Magnum Hunter Resources Corp. (MHR)
The U.S. has “a 200-plus-year supply of natural gas,” Evans said. “I don’t see it going up past $5 for two, three, four years. We’ve gotten so doggone good at finding it.”
Magnum Hunter, a Houston-based oil and gas production company, is operating in the Eagle Ford formation in Texas, the Marcellus in the mid-Atlantic, the Utica in Ohio, and the Bakken in North Dakota, Evans said today at a breakfast meeting organized by the Southern Methodist University Cox School of Business. He said shale plays are improving as producers use better technology and extraction techniques.
Natural gas, which reached an all-time high of $13.694 in July 2008, last settled above $5 in June 2010. It reached a 10- year low of $1.902 in April 2012. Gas for April 2013 delivery rose 3.3 cents, or 0.8 percent, to $3.993 at 12:04 p.m. today on the New York Mercantile Exchange.
U.S. natural gas reserves gained 49 percent to 304.6 quadrillion cubic feet in 2010 from 2005, the most recent year of data, according to the Energy Information Administration, the statistical arm of the Energy Department.