Natural Gas Price Picture May Change By Late 2012

The natural gas market today is a completely different market from that of just three years ago. A shortage of supplies has turned into an overabundance, and production continues to outpace demand. In July 2008, the price of natural gas in Louisiana was close to $14 per MMBtu, and according to the Energy Information Administration (EIA), natural gas production levels in the Lower 48 states was 62.78 Bcf/d. Today, the price of natural gas in Louisiana is hovering around $4 per MMBtu, and natural gas production levels in the Lower 48 states have climbed to over 69 Bcf/d.