Download - Natural Gas Market Update

Natural GasMarket Update

Interstate Municipal Gas AgencyAnnual MeetingApril 12, 2011

Posey [email protected]

Bearish & Bullish Factors

Bearish Production Storage Lower Anticipated

Summer Demand

Bullish Effects of Japanese

Tragedy Tropical Activity Macroeconomic

Factors

Bearish Factor: Supply

Source: Gelber & Associates

Bearish Factor: Storage

Source: Bentek

Bearish Factor: Lower Summer Demand

Source: Bentek

Bullish Factors: Effects of Japanese Tragedy on US Nukes

Source: Bentek

Bullish Factor: Tropical Activity

Source: AccuWeather

2011 Expected Number 2010 Season

Average Number

Tropical Storms 15 19 10

Hurricanes 8 12 6

Major Hurricanes 3 5 2

Bullish Factor: Tropical Activity

Source: AccuWeather

Bullish Factor: Macroeconomic Indicators

Source: Bentek

Historical Price Cycle

Source: Gelber & Associates

Will We Fill The Gap?