From the Houston Chronicle's Fuel Fix blog:
Potential exports and increased transportation and industrial use of natural gas will continue to push natural gas prices up to more sustainable prices, experts said Tuesday morning at a energy conference in Houston.* Along the same lines as: "I just received the following wire from my generous Daddy; Dear Jack, Don't buy a single vote more than is necessary. I'll be damned if I'm going to pay for a landslide."
Electric power generation, heavy truck transportation and industrial projects on the Gulf Coast are all making significant shifts towards natural gas – a transition which will continue to push up the price of natural gas, said Pearce Hammond, managing director of Simmons and Co., speaking at a Global Energy Conference sponsored by Mayer Brown.
Liquefied natural gas also will begin to be exported in 2016, when Cheniere Energy starts up its export facility in Sabine Pass, and natural gas exports to Mexico and Canada via pipeline will likely grow in the coming years.
Assuming that oil prices stay close to $100 per barrel, this increased demand is expected to push natural gas prices up to at least $5 per million British thermal units, Hammond said.
“I don’t think you meet this demand with four dollar natural gas – a lot of demand is coming,” Hammond said. “The price necessary to get the gas out of the ground is higher than four dollars. It doesn’t mean it’s six dollars but it is probably around five dollars.”...MORE
-John F. Kennedy, Gridiron Dinner, Washington, D.C., 1958
