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Magnum Hunter Resources Corp. CEO Gary Evans on the outlook for natural gas and oil prices.
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Natural gas futures hitting a six week high operable by the EIA showed -- inventory levels dropped by more than expected last -- -- what's ahead for the natural gas prices in US production.
Joining me now Gary Evans chairman and CEO of Magnum hunter.
Resource isn't Gary thank you for joining us aware our gas prices going they were historically low for a while -- a perhaps a colder winds.
Could push those prices -- what you think.
Well hopefully our -- our industry definitely needs higher prices so.
Yeah we've been suffering a pretty long -- -- low prices -- the last couple years and that's been exasperated by these tremendous shale -- that the US is discovered.
You know the months of January and February really dictate where gas prices will go for the ensuing year -- so.
We gotta have some cold weather in places like new York and in Chicago to really get these prices back up around four which is where we need him.
You'll company talking of shale project size is active in five major shale projects in North America how productive -- Well hello -- plays of what's you know made this country.
Head to the possibility becoming energy independent and it's we've always known shale plays existed we just have the technology today to now develop them so.
The plays at our company is most active is down on the eagle for which is south Texas -- for -- for us.
And -- -- play the Marcellus which is gas for cars liquids rich gas.
In West Virginia the Utica over Ohio -- the -- -- up in North Dakota and we're in southern Saskatchewan and Canada as well.
I wanted to ask you about oil we've seen these oil prices rise sat right close to 96 bucks a barrel with you see prices going from here.
Actually I'm quite surprised to see prices as high as they are I think one of the big.
Factors that such calls that is the that is the difference between Brent and Debbie T drawing in.
You've seen people getting more bullish on the economy that's a positive -- and India continue to have a major thirst for oil.
But again the United States is produce immoral than we haven't since the seventies and we've actually crossed the 50% barrier now of making 50% overall product that in rather than important and so.
I'm not real bullish on oil long term because I think we we got plenty of it a much more bullish hopefully the natural gas war.
We'll go well because lower prices will allow.
The industry -- to helpfully have higher prices because you have -- -- right well you know in the wake of the BP oil spill we source slew of government regulations come down since then.
How difficult has it to being to do business always seeing some of those regulations ease off a little bit.
Well for companies like Magnum hunter -- our businesses per -- dealing with landowners.
We have very few leases that are actually owned by the public of the government.
So that the difficulty has been on federal lands.
Where the government has been very slow greening.
Permits.
In the difficulties have been the -- border when the macondo accident occurred so.
We really haven't had any issues in getting the permits we want there's been delays in certain states -- it put in new requirements and there's new permitting.
Needs but.
Really it has not affected us it's been it's been mailing those companies operate with federal leases very good -- at a time Gary Evans CEO of Magnum hunter resources thank you so much for joining us.
Thank you actually think he is.
