O&G Market Notes (May 2016)
According to a recent Navigant report, two major events will occur by 2017 in the Natural Gas Market:
Natural gas prices are expected to double in 2017 based on the March 2016 price. However, as shown in Figure 1, this steep price jump simply pulls prices from the depths of the 10-year low in gas prices. Meanwhile, gas supply abundance remains the key driver of the North American gas market. This is a market in a surplus that will begin to recover only when there is additional demand—which is developing. As the United States is set to become a net exporter of pipeline and liquefied natural gas (LNG) by the end of this year, the increased demand does not threaten higher prices over the mid-term.
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Learn from our experts Gordon Pickering and Edward O’Toole as they examine the results from our recently published North American Natural Gas Market Outlook in this month’s issue of Oil & Gas Market Notes.