Supply & Demand

Execs see little hope of US gas price recovery

Executives at United States exploration and production firms made grim forecasts for North American natural gas prices at the Jefferies 2011 Global Energy Conference on Wednesday.
By Conway Irwin 1 December 2011 0 2389

Executives at United States exploration and production firms made grim forecasts for North American natural gas prices at the Jefferies 2011 Global Energy Conference on Wednesday.

“North American natural gas production growth is essentially useless at this particular point in time because you can’t make any profit,” said EOG Resources chief executive Mark Papa. EOG is allocating 80% of its $6.8-7 billion in budgeted capital expenditures to oil and liquids this year, rising to 90% of its budget in 2012. “We’re only going to spend 10% of our...