Short-Term Energy Outlook for July 2010

Posted on July 9, 2010 by Vorys

The Energy Information Administration (EIA) has released its Short-Term Energy Outlook for July, 2010, projecting "lower-48 onshore production increases [of] 2 Bcf/d (3.8 percent) in 2010 and 0.2 Bcf/d (0.3 percent) in 2011. According to Baker-Hughes, natural gas rig counts have climbed from under 670 in July 2009 to about 950 in April this year and have remained relatively stable since then."

Regarding price, the Outlook states:

EIA expects the Henry Hub natural gas spot price to average $4.70 per million Btu (MMBtu) this year, a $0.75-per-MMBtu increase over the 2009 average and $0.22 per MMBtu higher than in last month’s Outlook. Most of the increase in the price forecast occurs in the third quarter of this year, due to projections of increased hurricane activity in the Gulf of Mexico this season, which pushed spot prices higher. EIA expects the Henry Hub spot price to average $5.17 per MMBtu in 2011, up $0.11 per MMBtu from last month's Outlook.

For more, see here.

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