It looks like it’ll be a while before the price of natural gas skyrockets.
http://fuelfix.com/blog/2015/08/31/raymond-james-cuts-natural-gas-price-forecast/
HOUSTON — Raymond James lowered its long-term natural gas price estimates Monday, putting the investment banking firm in a growing group of analysts seeing a bleaker future for the fuel.
Raymond James said it had cut its forecast natural gas price through 2020 to $3.25 per million British thermal unit. The prediction is still a slight recovery: In early trading Monday, benchmark Henry Hub prices for natural gas were roughly $2.656 per million Btu.
The new price is far below the $3.75 price that Raymond James had previously forecast through the end of the decade and the $4.00-plus prices seen as recently as 2014.
Strong natural gas production and more efficient drilling led to the revision, Raymond James said in a note to clients Monday.
“Put simply, there is plenty of U.S. natural gas to meet rising demand at prices of $3.25 (or possibly lower) for the next five years,” the firm wrote.