E2B: Post-Pandemic Demand, Pricing Point to Optimistic Natural Gas Outlook – Part 2

by Tyler Kern on Feb 15, 2021
Electric VehicleselectricityNatural Gasnatural gas pricingPromoted ContentShale

+ more

Share this post

 

While natural gas producers had a challenging year in 2020, there’s reason for optimism in 2021. In the second of a two-part conversation, host Daniel Litwin discusses with Steve Hendrickson, President of Ralph E. Davis Associates, the state of the natural gas industry and what trends may impact the sector going forward in 2021.

Natural gas is inherently a cyclical business and Hendrickson has seen peaks and valleys in previous years. “There were declines in production when I first started in the industry. Then came along the shale revolution and our situation changed completely,” he says.

Today, companies must rely on capital discipline because of higher investment scrutiny to make sure they’re assessing all the risks. “Companies are looking to keep costs down and focus on their best assets. Some are doing this with consolidations,” Hendrickson says.

Another factor that’ll play out for natural gas is the new presidential administration. “Federal regulation or any type of regulation can impact things both on the supply and on the demand side. I see the new administration focusing more on coal to improve CO2 emissions,” Hendrickson says.

The adoption of electric vehicles will also impact the future of natural gas. Hendrickson asserts this isn’t bad for natural gas, as the cars still need energy. “An increase in electricity demand is favorable for natural gas,” he says.

As for the future, Hendrickson predicts that natural gas prices should increase in 2021, but that will depend on an economic recovery from the pandemic.

“I think this year is going to be a better year than last year [for natural gas],” Hendrickson says. “If you have gas production on today, that’s great news because you’ve already invested the money to get that production online and you should be able to see higher revenues from that.”

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Latest

Can Fitness Be More Accessible?
How Technology Can Make Fitness More Accessible
October 20, 2021
  Key Points: Fitness members want an easy tool to use on their mobile device to manage classes, memberships, in-gym daycare and other fitness services provided by gyms. Customers of Daxko Read more
Helping Restaurants of All Sizes with the Restaurant Repair Process
Helping Restaurants of All Sizes with the Restaurant Repair Process
October 20, 2021
  Running a restaurant is hard work especially if you are a small business. There are a lot of tasks that go into day-to-day operations that can all be derailed if the wrong piece of equipment Read more
EP 26: VRF Systems Provide Flexible Heating & Cooling Options: 10 Minutes To A Better Building
October 20, 2021
On this episode of 10 Minutes To A Better Building, Host Tyler Kern talked with Jason Lawrence, Ductless Technical Specialist at Boland Trane, which provides HVAC solutions and a network of more than Read more
Related
Software & Technology
How Sol-Ark and Simpliphi Help Those In Need
October 20, 2021
Early-Stage PE Investments
Healthcare
Assessing the Value of Early-Stage PE Investments
October 20, 2021
  Valuing venture or early-stage private equity investments can be tricky since they don't typically have revenues or cash flow yet. As such, applying traditional valuation methodologies like considering Read more
How the grid will need to change for electric vehicles.
Healthcare
How Will the Grid Need to Be Updated to Make the Roll Out of Electric Vehicles Viable?
October 19, 2021
  Key Points: Ways of increasing generation of electricity and capacity need to be increased to help take on the demand electric demand EVs could present. Places where the grid needs to Read more