NEW YORK, NY--(Marketwire - Jan 14, 2013) - After reaching a 12-month high in November, natural gas futures have since fallen 19 percent. Futures have declined for three consecutive days on growing speculation that mild temperatures across the U.S. will cause a steep drop in heating demand. Five Star Equities examines the outlook for companies in the Natural Gas Industry and provides equity research on Apache Corporation (
Unusually mild weather combined with near record inventories has created a bearish outlook for natural gas prices heading into peak demand season as roughly 50 percent of all households in the U.S. use natural gas for heating, according to the Energy Department. Historically, from late November to the first week of February natural gas prices have fallen approximately 42 percent.
"We see prices ultimately testing $2.20 and even last year's sub-$2, if the weather continues to moderate," wrote Energy OverView editior, Mike Fitzpatrick. "Like last year, we will be in a situation where we will be coming out of the peak-demand season with ample storage. The bearish sentiment will become overwhelming."
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Apache has teamed up with Halliburton and Schlumberger to find and develop ways to use natural gas in hydraulic fracturing. "By using field gas, the United States would import 17 million fewer barrels of oil each year to make the diesel to fuel these fracs," said Mike Bahorich, Apache's executive vice president of Technology.
LINN Energy has grown from a handful of natural gas wells in 2003 to a top-15 independent U.S. E&P company with approximately 5.1 Tcfe of proved reserves (pro forma for acquisitions announced in 2012) in producing U.S. basins as of Dec. 31, 2011. Two of the company's key growth areas are the Granite Wash and Permian Basin Wolfberry Trend.
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