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Natural gas hitting a fresh 2012 -- -- ED.
8% from April lows but is that bad news for natural gas producers let's ask ratings -- chairman and CEO of Laredo petroleum.
Thanks for coming on the show.
-- ask you what happened because anecdotally I talked to a lot of producers.
Folks that were involved in fracking -- where the other -- aren't real decline in production and we saw the -- drop.
Back in April backing off it it was that sort of across the board and did -- help prices or is that we use summer.
Well thanks for having me that -- had me you know the new issue with natural gas is that we.
A couple things one we have a lot of it out you can argue that said in the years or a hundred year supply or whatever but.
What we saw early on was that there were so much demand destruction.
Yet for a couple of years with a huge supply.
And now we're seeing that because of the generation using natural gas and some other things.
That that demands picking up some in the supply still very robust.
So deep right when we -- those prices fall so low back in April around two box all of a sudden you know.
-- friends are evolved in fracking all around the country a lot of the different hot spots and they said.
Things -- real quiet for a moment there because people were worried that this low prices gonna stick around for awhile.
Do you think that this is the new normal you know somewhere between two and four and is that good for your business.
The -- -- drilling -- straight natural gas declined dramatically.
We're still doing a lot of natural gas as we drill for natural gas liquids and produced -- gas along with the liquids and the -- So there's a a robust supply coming on we think that it's good for the economy of the united state or.
And we think it's also going to be good for natural gas producers over time.
As good as the demand picks back up for natural -- Yes -- what does that mean for your business going forward maybe if people can plan on this cheaper supplied some good thing.
Because you'll see more electricity generators switching over to natural gas or maybe even seeing more use of natural gas for transportation.
The you know Laredo is about sixteen plus percent crew will.
25% of our production is natural gas liquids so the price of natural gas itself does matter to us and the industry.
And I think it's good in general for us to.
Burn natural gas and for generation and I think CNG for transportation.
Is a very Smart move for the country to move to.
So what are you planning for this winter for the price of natural gas what you think the weather's going to be like and and what do you think the prices -- like.
This the forecasted seen have been all over the place for the winter weather we've seen -- I think it's mild and some that think it may be little stronger.
That the facts are that we have our five year average supplier for storage of natural gas is still up above two today the five year average.
So I think -- I think natural gas is long term rising but I think we do have a lot of supply that -- curtail.
The upside on prices yes so what -- two to four box four barks five bucks were -- Iraq for 450 somewhere in that range would be our.
Best guess today.
OK really take much for coming we told -- your time thank you.
Real like for just the TV show an outrage -- eleven on Showtime's hit series homeland.
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