An interesting new report is out from IHS. Researchers with IHS predict that the price of natural gas, because of the flood of new shale gas coming into the market, will stay somewhere between $4-$5 per thousand cubic feet (Mcf) at the benchmark Henry Hub for the long-term–like until 2035, at least.
The report, titled “Fueling the Future with Natural Gas: Bringing It Home” (25-page executive summary embedded below) says shale gas can be profitably produced at $4/Mcf or less. One of many conclusions from their research: “…the North American natural gas resource base can accommodate significant increases in demand without requiring a significantly higher price to elicit new supply.” Translation: A LOT more shale drilling just ahead, even with relatively “low” prices. Here’s another fascinating conclusion from the study…
