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$4 MCF Natural Gas Price In US Compares With $10 MCF In Asia And $6 To $7 MCF In Europe: When Will Excess North American Supply Be Shipped Abroad?

67 WALL STREET, New York - July 12, 2011 - The Wall Street Transcript has just published its Oil & Gas: Refining & Marketing Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online. Topics covered: Shale Drilling Capital Expenditures - North American Hydraulic Fracturing Legislation - Frontier Oil Exploration - Oil and Gas Price Divergence - Emerging Market Competition Companies include: Berry Petroleum (BRY); Forest Oil (FST); International Fuel Technology (IFUE); ARCO (BP); Anadarko (APC); Apache (APA); BHP (BHP); CNOOC (CEO); Carrizo Oil & Gas, Inc. (CRZO); Chesapeake (CHK); ConocoPhillips (COP); Crosstex Energy, Inc. (XTXI); El Paso (EP); Energen (EGN); Energy XXI (EXXI); Eni (E); Enservco (ENSV); Exxon (XOM); Hess (HES); Kosmos Energy (KOS); LUKOIL (LKOH.ME); MRO (MRO); Magnum Hunter (MHR); McMoRan Exploration (MMR); Mitsui (8031.TYO); Murphy (MUR); OXY (OXY); PetroChina (PTR); Petrobras (PBR); Pioneer (PXD); Plains Exploration (PXP); QEP Resources (QEP); Questar (STR); Reliance (RNRL.BO); Rosneft (ROSN.ME); SandRidge Energy (SD); Shell (RDS-A); Statoil (STO); Texaco (CVX); Total (TOT); Williams (WMB). In the following brief excerpt from just one of the many interviews in this extensive report, an experienced analyst discusses the outlook for the sector for investors. Amir Arif, Petroleum Engineer and Chartered Financial Analyst, brings to the firm a diverse background in both the energy and the financial services industries. Mr. Arif has more than 13 years of experience in production operations, investment banking and investment research of the energy sector. His focus is on upstream and midstream energy and natural resource companies. Mr. Arif received his B.S. in petroleum engineering with distinction from the University of Alberta and his MBA in finance from the University of Calgary. He is a member of the CFA Institute and the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA). TWST: How about on the gas side? Here we are with continued strong demand for petroleum products, and gas prices are horrible and don't seem to be getting better. Mr. Arif: Yes. With natural gas, it's really a problem that it is a regional market, not a global market, and these nonconventional shales have just unlocked such a large volume of gas. And the fact a lot of these companies need to drill that acreage in order to hold it means that they're producing more gas than what the regional or the North American demand is. And so on the natural gas side we're in a oversupplied market, and a lot of analysts have been calling for a turn in natural gas over the last three years. And it's just a market where the turn on natural gas always seems to get pushed out. And we think this year is no different, as supply is going to exceed demand in 2011. It's not until mid 2012, if anything, that we'll start seeing the market come back into balance. TWST: Why hasn't this developed into a global market like oil? Mr. Arif: Eventually it will. It's just a slower market. We were building regasification facilities thinking we were running out of natural gas five years ago. We've never built any liquefaction facilities to remove our excess natural gas. So there are a few proposals out there. There are a couple off of Western Canada's West Coast for proposal for some liquefaction. So eventually, once we get some liquefaction facilities built by 2015, 2016, we should be able to move towards the global natural gas price. TWST: I would think that with us having so much, there's got to be a market somewhere. Mr. Arif: Exactly. If you look at where gas is trading at in Asia for example, it's $10 an Mcf, and in Europe it's $6 to $7 an Mcf, and over here we're sitting at $4 an Mcf. So there's definitely demand out there if we can get it there. TWST: At $4, do the companies make any money? Mr. Arif: They don't, and that's the problem. So a lot of these gas companies are outspending cash flow just because the cash flow is so little because of the gas prices. But at the same time they're forced to continue to spend to hold onto a lot of these leases. Otherwise, they're going to lose them. So the balance sheets for the natural gas companies were starting to get a lot worse. What's helped them is the asset markets opened up, so you've seen a lot of large asset sales as well as the equity markets opened up. And really what helped them is the JV market that opened up. We saw lot of international integrateds come in wanting to partner up with some of the shale projects going on over here. The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online . The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations. For Information on subscribing to The Wall Street Transcript, please call 800/246-7673