The experts within our Energy Group maintain ongoing contact with a wide range of knowledgeable sources to stay abreast of the issues and trends that could impact the industry’s M&A climate or otherwise influence our clients’ businesses.  Following are a few of the topics addressed in our most recent Energy Services Review, which is published quarterly.

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ENERGY REVIEW (2009: Q4) (View complete report)

Spotlight on the Natural Gas Market

Despite the softening of industrial demand, the potential oversupply of LNG and depressed spot prices, the outlook for the natural gas industry remains strong. Following a 24-month period of volatility with prices ranging from a high of $13.7 per million BTUs in July 2008 to under $3.5, the market is expected to stabilize. New discoveries and improved infrastructure have helped to ease the pressure on natural gas prices and encouraged residential and industrial consumers to increase their dependence on natural gas. New discoveries in the U.S. and Canada have greatly increased supplies, thus lowering prices. According to the Energy Information Administration, natural gas discoveries in the U.S. in 2008 totaled 29.5 Tcf, representing the sixth consecutive yearly increase and the highest level of discoveries in the 32 years that the EIA has published proved reserves estimates. Additionally, significant capital has been invested in building out infrastructure in recent years which has made it easier to transport gas around the continent and has helped to diminish the volatility that was associated with natural gas prices. More than 20,000 miles of natural gas transmission pipeline were placed in service over the last decade with nearly 4,000 miles being added in 2008 at an estimated expenditure of $11.6 billion.

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