Natural Gas Speculation

I peeked around for discussion on natural gas proces and came across a site that sounded objective and reasonably researched (or at least read). They gave this chart of past natural gas prices and some projections on its future cost.

Their reasons for their prediction of 30% increase in natural gas in the next 6-8 months?
  • Lower production from new gas wells, less new drilling and depletion of older wells.
  • New electricity generation is usually gas fired. The gas to be used in planned natural gas generators in Ontario equal a quarter of TOTAL provincial annual demand.
  • Supply is flat and is expected to remain so, and demand is up.
  • Historical oil-to-gas ratio is 7.5, putting gas at $13 per Gigajoule

    It's crystal ball gazing, but worth mentioning.
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