NEW YORK, NY--(Marketwire - Oct 1, 2012) - In 2011, the U.S. met 81 percent of its energy demand, the highest since 1992, according to data compiled by Bloomberg. The surge in hydraulic fracturing in shale formations played a major role, and has also resulted in a vast oversupply of natural gas. According to the Energy Department's Short-Term Energy Outlook by the end of October natural gas inventories could reach a record of 3.95 trillion cubic feet. Five Star Equities examines the outlook for companies in the Natural Gas Industry and provides equity research on Chesapeake Energy Corporation (
New natural gas pipelines being introduced later this year will look to add to the nation's current supply glut. New pipelines could boost deliveries from the Marcellus shale deposit in the Northeast by as much as 30 percent. According to numbers from the Energy Department there are approximately 1,000 Marcellus shale wells that are uncompleted due to a lack of pipeline access.
"There are new pipelines coming up and more Marcellus gas is going to flood storage going into winter," Price Futures Group senior market analyst, Phil Flynn, said in a recent phone interview. "Unless you get a really cold winter, prices are going to be in the $2 range."
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Chesapeake Energy is the second-largest producer of natural gas, a Top 15 producer of oil and natural gas liquids and the most active driller of new wells in the U.S. Shares of the company fell sharply last Wednesday after Stifel Nicolaus analyst Amir Arif downgraded their shares to "Hold" from "Buy." Shares of Chesapeake are down over 14 percent for the year.
SandRidge is the leading operator in the Mississippian Oil Play of northern Oklahoma and western Kansas. The company believes this area generates the highest rate of return for horizontal drilling in the U.S. today. The company reported record oil and total production of 4.6 MMBbls and 8.2 MMBoe in the second quarter.
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