Northern Pegasus Say Gas Supply Excesses To Dwindle.

Online, March 10, 2010 (Newswire.com) - Referring principally to the U.S. recovery as the trojan horse, the Hong Kong-based team of analysts said that optimism has risen yet again after the U.S. unemployment rate was a lower-than-forecast 9.7 percent last month.
The Northern Pegasus analysts told investors that the complexities of the gas situation are centred around the issue that there's too much in the system for the demand we have, since industrial demand is always slow to come back after a recession."
Month-to-month gains in gas production will begin to show up later this year as new wells come into service, they said.
An Energy Department report this week showed that gas inventories totaled 1.737 trillion cubic feet in the week ended Feb. 26, 3.9 percent below year-earlier levels. Inventories were 1.2 percent above the five-year average.
Crude oil, heating oil and gasoline all rallied as the unemployment data spurred optimism that fuel demand will climb in the U.S., the world's biggest energy-consuming country.
Market bears have been able to lean on increased drilling and more supplies in shale fields from Louisiana to Pennsylvania to press gas lower, the Northern Pegasus analysts also claimed.
The Energy Department's Energy Information Administration raised its forecast for nationwide natural gas production in 2010 for the ninth consecutive month in a report on Feb. 10.
Output will average 58.73 billion cubic feet a day in 2010, up 0.5 percent from 58.41 billion estimated in January, according to its monthly Short-Term Energy Outlook. Daily output in 2009 averaged 60.3 billion cubic feet. Northern Pegasus said they would make further statements to their clients on the subject following the release of the next Energy Department report later this month.