May 19, 2012

Natural gas: How low will it go?

Natural-gas prices have been plummeting and aren’t expected to come up anytime soon.

That’s putting a big squeeze on Northern Colorado’s natural-gas producers and has forced them to cut back on exploration and production while they wait for demand to catch up with supply.

When that might happen is uncertain.

But when it does, Northern Colorado will be poised to benefit, said Katie Jolly, an analyst with energy analytics firm BenTek.

“The gas is still there, and we know how to get it,” she said. “Then we can definitely turn production back on.”

For now, however, it’s a classic supply-and-demand dilemma straight out of Economics…

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