NYSE:EQU - Post Discussion
Post by
pogohere on Dec 23, 2012 7:22pm
US Nat'l Gas Reservoir: Conv Wisdom
06 June 2012
Securities Research & Analytics
https://www.credit-suisse.com/researchandanalytics
Conventional Gas: ‘Missing Link’ to US Gas
Supply Set to Decline
¦ Our take: Our deep dive analysis suggests that the unremediated decline
rate for conventional production is 11%, or 4.1 Bcf/d. Recent sharp declines
in conventional gas activity and more permanent shifts in producer
economics that favor liquids plays could bring about a faster reset in the
natural gas market than implied by the gas futures strip.
Supply work supports a more favorable market in 2013 and beyond. Based on our model, we see the potential for meaningful declines, with 3.2 Bcf/d of declines in 2013 and a further 1.6 Bcf/d decline in 2014. While these production declines will likely be partial offset by rising unconventional production, we see the potential for a more favorable gas market given an improving supply-demand balance.
https://tinyurl.com/ce5otmp
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