Oct. 12, 2006


Description

While crude oil prices have remained robust, U.S. natural gas prices have steadily retreated from recent highs, with natural gas now trading at a significant discount to crude oil. Are the good times for natural gas coming to an end, or are we simply experiencing a temporary bump on the road to sustained high prices?

This presentation will examine recent developments in the U.S. natural gas market and cover likely scenarios for the commodity that is so vital to independent E&P companies. In particular, the drivers of recent natural gas pricing developments will be outlined, along with explanations of why natural gas in the United States could begin to trade at a discount to natural gas in Europe and Asia. Given the vast amounts of indigenous reserves and the impending arrival of LNG, natural gas prices in the United States could begin to consistently trade lower—even lower than current levels. Several questions, however, remain:
  •  Is there adequate supply in the U.S. rig market to develop current reserves and bring on significant new supply?
  • What is the cost of this indigenous supply?
  • How long will it take to bring on line?
  • What role will LNG diversions to Europe have on U.S. pricing?
  • What effect will refining capacity additions have on the pricing of natural gas substitutes and switching economics?
Please register in advance. Walk-ins accepted on a space-available basis only.

Featured Speakers

Speaker Stuart Bodden
McKinsey & Co. Stuart Bodden is a principal with McKinsey & Co., where he is coleader of the company’s global natural gas subsector. He has worked extensively in the electric power and natural gas and petroleum practices. He has performed due diligence for a private equity group looking to invest …


McKinsey & Co.
Stuart Bodden is a principal with McKinsey & Co., where he is coleader of the company’s global natural gas subsector. He has worked extensively in the electric power and natural gas and petroleum practices. He has performed due diligence for a private equity group looking to invest in an offshore drilling company and developed North American strategies and business models for a major oil and gas company. Bodden also worked on international business models, created an offshore seismic technology strategy for a deepwater player, and simplified the organizational design for the upstream segment of a major oil and gas company. He co-led an internal knowledge development effort to determine the impact of LNG on the U.S. market, including LNG''s effect on natural gas prices, micromarkets and regional pipeline utilization.

Before joining McKinsey, Bodden was a Kauffmann intern at Sandefer Capital Partners, a private equity group concentrating on upstream energy deals. Before attending business school, he was a restauranteur in Austin. Bodden has a BS degree in applied mathematics/economics from Brown University and an MBA degree from The University of Texas at Austin.

Full Description



Organizer

Barry Faulkner


Date and Time

Thu, Oct. 12, 2006

11:30 a.m. - 1:30 p.m.
(GMT-0500) US/Central

Event has ended

Location

Petroleum Club

800 Bell Street
Houston, TX