Financial Times analyst predicts a sharp spike in NG prices very soon as most production expansion, exploration has been puton the back burner.
Natural gas production in the U.S. will likely continue growing through the first quarter of 2009 as companies finish their budgeted projects from the previous year. But then it could be in for a big decline. The reasoning? Just as you don’t start production overnight, you don’t stop it as well. That’s according to John Richels, president of Devon Energy (DVN).
The Financial Times reports Richels expects production decline to begin in the second quarter of 2009 from record-setting paces in 2007 and 2008 (4.3% and 6% respectively) and continue on into the 2010. As context, the increase in nat gas production in 2006 was just 2.3%. For more, See Professor James Anderson’s Natural Gas: The Real Alternative.