Calling the increase in natural gas demand “phenomenal” both nowand for the foreseeable future, Simmons & Co. InternationalVice President David Pursell predicted it is “unlikely” thatproducers will see gas prices return anywhere near to $2 for atleast three to five years. He said $2 prices were “in the rear viewmirror” for gas producers.
Simmons
Articles from Simmons
Analyst: Gas Depletion Has Arrived
The industry rumblings of a declining gas supply are not far offbase, said a report by David Pursell, an analyst for theinstitutional securities group Simmons & Co. Intl. Judging fromweekly American Gas Association (AGA) storage data and Departmentof Energy (DOE) LNG production figures, the report forecast the gasdecline rate could surpass 4% in the coming months when compared tolast year, unless a sharp increase in gas-directed drilling takesplace. Using these findings, Pursell said gas prices should stayabove $2/Mcf for the near future.
July 14, 1999
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