Long Term View Must Change

2010

Price: $2.69

EIA Start Price: $2.10

NPC Start Price: $2.00

2010 Price:

$2.90

Long term forecasts of supply and demand have

been contradictory.

• Yes, $2.50 is too low, $8.00 is too high

  • $2.50 gas price cannot support needed supply growth
  • F&D costs deceptively low due to minimal exploration
  • Low prices support aggressive, unsustainable demand growth
  • Demand will respond to price changes - both ways

• What is the sustainable gas price & rate of market growth?

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