Boone Pickens is very bullish on Natural Gas but he does not expect a big price increase in 2010:
Texas oil tycoon T. Boone Pickens said on Tuesday U.S. natural gas prices were unlikely to “run away” in 2010 but that he was long on the fuel after this year as the economy picks up.
In a video interview with Reuters Insider, the billionaire said he expects natural gas prices, currently around 5.50 USD per million British thermal units, to reach between 6 USD and 6.50 USD per mmBtu this year.
“(Natural gas) prices are not going to run away (this year) because we have too much natural gas,” Pickens said.
The United States is estimated to have some 2,000 trillion cubic feet of technically recoverable natural gas reserves, or enough gas at current production rates to supply the country for more than 90 years, thanks to recent increases in production from unconventional plays like shale.
Pickens was bullish on natural gas after this year as he sees a recovery in the economy boosting demand for the clean fuel.
“I’m long natural gas, not in 2010, but out beyond 2010,” he said. “As economic recovery occurs, demand will go up for natural gas. It is going to happen, it is just going to take a little while to get there.” in Investorazzi.com
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