August 2011, Vol. 238 No. 8
In The News
Goldman Sachs Sees Natural Gas Prices At $6 By 2015
While predicting that U.S. natural gas prices will reach $6 per million Btus by 2015, Goldman Sachs analysts projected they will average just $4.25 in the near term as new shale gas continues to flow into the market.
After next year, Goldman said it expects that a combination of coal-fired power plant retirements and a rise in industrial demand will erode more of the gas surplus and strengthen prices. In addition, long-term U.S. natural gas demand may be further supported by possible delays in the construction or license renewals of nuclear power plants as well as by potential U.S. LNG exports, the bank said
“We believe that U.S. natural gas prices will likely be supported above the $6 range from 2015 onward,” the analysts said in a note to clients.
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