North American gas markets are dealing with the remnants of another mild winter, but fundamentals look to push prices up to $3.75/mmbtu in 2017 as demand accelerates just as oil and gas drilling have collapsed. After a subsequent ramp-up in drilling, we expect Henry Hub prices to hover around $3/mmbtu from 2018 to 2022, an amount which is stronger than our previous outlook. Northeast pipeline delays and lower liquids prices lead to a higher outlook for prices, and while demand looks to be robust, there are chinks in the armor in terms of a lower power burn and lower LNG liquefaction utilization. Better upstream economics and Northeast pipeline delays give an upside for WCSB production. In this short note, we provide our preliminary annualized prices for Henry Hub, Transco Leidy Line and Dominion South Point out to 2022 and outline the levers and risks. Our traditional long-term highlights update will follow soon.
This report includes 8 file(s)
North America gas long-term outlook highlights—H1 2016 PDF - 250.01 KB 3 Pages, 0 Tables, 1 Figures
NAGS LTO Supply and Demand Balances Spring 2016.xls XLS - 949.50 KB
NAGS LTO NGV Breakout Spring 2016.xls XLS - 665.00 KB
NAGS LTO LNG Breakout Spring 2016.xls XLS - 819.50 KB
NAGS LTO Infrastructure Spring 2016.xls XLS - 188.50 KB
NAGS LTO Demand Breakout Spring 2016.xls XLS - 1.71 MB
NAGS LTO Price Outlook Spring 2016.xls XLS - 934.50 KB
NAGS LTO Supply Breakout Spring 2016.xls XLS - 754.50 KB
Volatility in oil markets and the growth of unconventional gas supply have created a high degree of uncertainty about future gas demand and the direction of gas prices.
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Commodity market report | Jun 2016
North America gas long-term outlook highlights—H1 2016
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