March 2002

Trends and Resources

HP Impact: Natural gas’s volatile business cycle continues

"We should not mistake the calm in today's natural gas prices asanything more than the low side of our normal business cycle,"advises R. Skip Horvath, president of the U.S. Natural Gas SupplyAssociati..

Weirauch, Wendy, Hydrocarbon Processing Staff

"We should not mistake the calm in today's natural gas prices as anything more than the low side of our normal business cycle," advises R. Skip Horvath, president of the U.S. Natural Gas Supply Association. Speaking recently at the Cambridge Energy Research Associates' annual CERAWeek conference, he noted that "producers need to know both the depths and heights of the competitive marketplace in order to make proper investment decisions. "Volatility is normal and we should expect it of a healthy competitive market going forward. There are two features to the production business cycle that are important: first, since the early 1990s, each price increase and decrease has been a l

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