O&G Journal – Daily Update 11/5/09
Tudor Pickering Holt & Co. (TPH) foresees a fairly dramatic recovery in natural gas prices next year, a spokesman told an Oct. 29 energy finance summit at Rice University’s Jess H. Jones Graduate School of Business.
Bobby Tudor, chief executive officer of the investment bank, said TPH early this year finished a gas supply study in which it forecast gas prices will average $7.50/Mcfe on the New York Mercantile Exchange during 2010 and $6.50/Mcfe in 2011.
Over the next decade, TPH forecasts a long-term US rig count of 1,500 rigs of which 400 will be drilling for oil, 600 for shale gas, and 500 for nonshale gas.
“We assume an incremental 300 rigs in Canada, for a total US and Canada rig count of 1,800,” Tudor said.
Acknowledging that shale gas plays are “a game changer,” for US gas supply, Tudor noted, “Shales alone won’t be enough to satisfy gas demand in North America. We will have to have some production from conventional gas.”
