The era of long-term natural gas prices averaging around $2 per million Btu is over. So says ESAI, the consulting firm based in Wakefield, Massachusetts. The market is headed for an average price closer to $4.50 per MMBtu, says gas analyst Scott DePasquale. "The continental market's indigenous supplies are either not as endless as expected, or are locked-up in the western U.S. due to federal regulation and environmental lobbying." He adds that in any case, getting the country's abundant reserves to market is becoming more difficult and more expensive. Meanwhile, springtime U.S. gas storage levels have been at their lowest point in 10 years. "With demand growing beyond the ability of domestic supply, over the next 10 years, the U.S. market will be forced to rely more and more on LNG imports on the margin." -Leslie Haines
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