I read with interest your post concerning GS’s projections regarding Natural Gas.
Personally, I tend to agree that “the picture doesn’t look like it should get better any time soon ...”
However, Michael Sutherlin, CEO and President of Joy Global, has a different opinion, which he detailed in the question and answer session of yesterday’s conference call. In particular, he argues that Natural Gas prices will gravitate back to the $7 range within the next 12 months or so, and implies that the move up might be rapid once it starts.
I have included the actual statement he made regarding Natural Gas Price projections below. Apparently, his remarks are based upon insights he has gained as a board member of TESCO. TESCO serves the oilfield and natural gas drilling markets; it has a market cap of about $250M.