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Natural Gas Prices Ready to Surge?

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    Caprock Risk Management President Chris Jarvis on the outlook for natural gas prices.

  • Duration 2:51
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Action -- energy prices taking a tumble along with the stocks today oil slipping below a 102 dollars per barrel.

Natural gas falling back to its ten year low.

Chris Jarvis who is president of cap -- risk management says despite natural gas is 30%.

Dive this year the commodity is set.

For a massive run up in the rest of 2012 he joins us now fresh I have heard this from a lot of people -- -- they be happy a year ago on the trading floor at -- BGC traders they were saying watch out natural gas and all it has done is plummeted.

What makes you believe there will be not just a good run up but a massive run up here in the price.

Well I don't -- quite go that far as the master run -- by a what I think what you're gonna see here obviously we have about two point sixty ship -- Max capacities four point one -- she -- for going into that the injection season.

Bottom line is you're gonna have to think shut and there's no way we're gonna be able to put that much -- about more than four point one in the ground.

When that happens I think if we get a cold -- -- and the fact that we're gonna have -- shot and then certainly I think the fundamentals and natural gas to change rather quickly.

If we get back to the five year average is note there's those -- problem for -- getting back to the three and a half to four dollar range near the five year average served for storage so.

It's really predicated on not the shot ends as well as getting in a decent winter next year.

-- Chris with that in mind -- stocks in particular the natural gas -- do you think we'll see the most growth from a jump in prices.

I mean clearly the with the environment hour now I mean it that there are Chesapeake Energy would -- -- -- -- to take a look at obviously have a good balance sheet they can weather the storm.

Certainly they can take advantage of some of these distressed stock natural gas properties and sold out Chesapeake would certainly be one out of topped the list for that.

Look we've got two dollars and three pennies per million British thermal units.

Just two years ago we were at fourteen.

Dollars.

What would it take to get us up to that level when the supply is pretty exponential at this point at least here in the United States.

I I I don't see fourteen dollars and any time soon.

Maybe my -- time but certainly.

In how we can get back to that three and a -- four dollar range which I think is quite fair what value for five dollar in a run the five year average.

But right now you know she's she'll become a technology -- he's become a technology polite.

And clearly we have an abundance of in this country one quick last question here Chris what is your price target for gasoline over the summer.

Well.

Without any attention diary and I think we've got 44 and a quarter pretty easily and gasoline.

If I Rand does hit I think -- five dollars north.

How should.

This without they -- -- all right Chris Jarvis a cap rock a risk management Chris thank you very much for joining us thanks Chris.

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