27 September 2007 19:27 [Source: ICIS news]
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Factors such as a warm winter, a flat economy and moderate gas demand and supply should keep price pressures flat, according to the outlook.
The outlook cited several authorities, including weather forecasts from the National Oceanographic and Atmospheric Administration (NOAA) and gas demand projections from Energy Ventures Analysis (EVA).
Forecasts from NOAA call for the US winter to be colder than the last two winters but still warmer than the 30-year average. The NGSA added that hurricane activity in the rest of this year's hurricane season would place upward price pressures on natural gas.
Projections from EVA call for gas demand to increase 278bcf, or 1.8%. That would result in an increase in natural gas demand for residential and commercial consumers by about 168 bcf, or 3.2% above last winter.
A high level of activity for US natural gas rigs also should keep supply high, the NGSA concluded.
Rig activity in August averaged 1,473 as compared with 1,342 rigs at the same time last year, an increase of 10%, according to an analysis by ICF International.
The increased rig activity should result in 30,500 gas wells completed in 2007, up from 29,000 in 2006, according to ICF. That will boost natural gas production in the continental
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