This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Navigant Releases New Outlook On North American Natural Gas Market Prices

Navigant’s (NYSE: NCI) Energy practice has issued its North American Natural Gas Market Outlook, Fall 2013 (Outlook), including updated forecast data on natural gas prices, dry conventional gas and shale gas production, natural gas demand and gas storage activity.

According to the updated forecast, the real Henry Hub average price is expected to return to above $5/MMBtu after 2020 and reach $6.93/MMBtu by 2035 1.

Navigant’s analysis projects:
  • North American consumer natural gas demand is expected to increase from 77.8 Bcfd in 2013 to 108.7 Bcfd in 2035.
  • North American dry natural gas production is expected to grow by 44 percent from 87.3 Bcfd in 2013 to 124.5 Bcfd in 2035.
  • LNG exports are expected to grow in North America, reaching up to 7.8 Bcfd by 2022.

“Five years after the first significant effects of gas shale in the U.S., the North American market is still being driven by fundamental gas supply and production growth,” says Gordon Pickering, a director with Navigant’s Energy Practice and author of the Outlook. “Looking forward, the market is expected to be largely influenced by abundant, even surplus supply in the short- and mid-term, then evolve over the longer term into a market that is fully connected to the global natural gas market. The global connection will result from both the rapidly developing North American natural gas liquefaction sector and natural gas exports to anxiously waiting markets, particularly in Europe and in Asia.”

According to the Outlook, total North American natural gas consumption for gas-fired generation and industrial use are projected to grow at an average annual rate of 3.7 percent and 2.4 percent respectively through 2020. In the near term, North American natural gas prices are projected to recover from 2012 lows, but will stay at moderate price levels. In the mid-term, Henry Hub prices are expected to rise to more than $5/MMBtu as a result of a combination of factors including increased gas-fired power generation, higher natural gas consumption for industrial use and a number of LNG export projects coming online. Over the long-term, natural gas prices are projected to continue the upward trend, albeit at a slower rate. Overall, the Outlook projects natural gas prices in North America will stabilize, demonstrating less volatility over the long-term, and helping to support a healthier market environment for both producers and end consumers.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs