17 September 2009 21:47 [Source: ICIS news]
BOSTON (ICIS news)--US natural gas prices will not move much higher than the low $5/MMBtu range as local shale gas production ramps up in coming years, Andy Weissman, senior energy advisor of FTI Consulting, said on Thursday.
“We are on the verge of a revolution, being able to exploit a local energy resource like never before,” said Weissman at the Chemical Purchasing Summit organised by ICIS and Purchasing magazine.
“It is apparent that there are enormous reserves of natural gas located in shale formations in the US, and in the important energy-consuming region of the Northeast,” he added.
US domestic natural gas production shot up “explosively” starting in the first quarter of 2008, Weissman said.
Development of shale gas will also likely mitigate price volatility, he added.
“Shale gas production is more like manufacturing, leading to a greater reliability of production,” said Weissman.
Natural gas futures prices on the NYMEX fell nearly 29 cents on Thursday to $3.471.
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