Natural gas prices hit 2012 highs in October, so it’s a good time to learn more about where they are headed. Natural gas storage levels are still on pace to set records in the next few weeks, but prices are up 88% from lows near $2 per mmbtu in April. Even though $3.50 is the best number we’ve seen in the past few years, it’s a lot better than what a lot of us saw on our royalty checks throughout the summer.
Laredo Petroleum’s CEO shares his thoughts on the natural gas industry in the video below. He believes somewhere around the $4-5 per mmbtu will be the norm going forward. After this past summer, I think many of us would be very happy with $5 natural gas.