Southwestern Energy: U.S. Gas Production To Stay High For The Next 12-18 Months
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Speaking at an industry conference in New York on September 6, Southwestern Energy's (SWN) CEO Steven Mueller, answering investors' questions, shared his view on the natural gas industry fundamentals and future direction of gas prices. Mr. Mueller's perspective is particularly interesting as it comes from the CEO of a leading pure play natural gas producer whose operated volumes represent over 3% of total U.S. natural gas supply.
With regard to the natural gas production trend, Steven Mueller commented:
"As I look at it in the future, generally I think production is going to stubbornly stay high for the next twelve to eighteen months. I don't see much dip in the production. It has started to flatten out, and will stay pretty much flat for a while, before you actually see it tip over."
On the demand side, he sees no sources of additional demand that would help turn around the over-supplied situation in the domestic natural gas market in the immediate term:
"For the next twelve months - all the demand, all the things you can use gas for, is being used today - so you will not see much more demand. Demand is approaching though that flattened production line, so it will continue to go towards that line." READ FULL ARTICLE HERE