Natural Gas Prices

U.S. natural gas prices has risen 93% since last August and there is some concern that prices might retreat over the summer. The interesting thing is that comparing U.S. prices with the rest of the world they are undervalued. Many analysts believe that this will drive prices higher in the future. However, Chesapeake's chief executive believes that production levels will also increase which will keep prices in the range they currently trade. I find this intriguing because they would definitely benefit from higher prices, yet he sounds pretty confident that his assumption of stable prices will hold.

LNG (liquefied natural gas) has made transportation of this energy source easier which could potentially lead to higher level of natural gas use as an energy source. Natural gas emits the least amount of carbon dioxide out of all hydrocarbons and many green initiatives will include increases in natural gas over crude oil and coal.

Source: WSJ