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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (161185)	12/16/2011 7:00:35 AM
From: Dennis Roth	2 Recommendations Read Replies (1) \| Respond to of 206182

Natural Gas Weekly Marcellus Shale Should Be Key Component of U.S. Natural Gas Production Growth In 2012 15 December 2011 ¦ 12 pages citigroupgeo.com Marcellus To Be Key Component of 2012 U.S. Natural Gas Production Growth – Although our E&P coverage group has continued to shift activity to oil & liquids rich plays, the Marcellus shale remains a notable exception with production of ~3.0 Bcf/d currently but projected to exit 2012 at roughly 4.6 Bcf/d, or ~7% of total U.S. onshore natural gas production. On average, we project that total Marcellus production will increase nearly 1.5 Bcf/d in 2012 versus this year and consequently account of around two-thirds of our total projected, although perhaps conservative, increase in U.S. natural production next year. In fact, every public energy company with operations in the Marcellus expects to grow production from the play in 2012. Meanwhile, production from our coverage group in the Haynesville shale is expected to be about flat, on average, in 2012 versus this year even though we project a continued drop in the horizontal rig count here. Interestingly, even the Marcellus horizontal natural gas rig count has fallen by 10 over the past two months as the composite spot price fell below $3.00/MMBtu in late November although this trend is not expected to persist. Overall, apart from growth in natural gas volumes in liquids-rich plays and that associated with oil production, we expect production growth in the Marcellus shale to sharply outpace flat or perhaps any potential decline in Haynesville production in 2012.