WASHINGTON — Despite supply interruptions caused by Hurricane Gustav, there should be plenty of natural gas available for heating this winter, and prices are likely to stay about the same as last winter, natural-gas producers said Thursday.
Nearly half of the natural-gas production in the Gulf of Mexico remains shut down because of two recent hurricanes. But the industry said that gas inventories at the start of the winter heating season — traditionally the beginning of November — are expected to be well above the five-year average.
And this winter, producers are expected to pump about 8 percent more gas than last winter, with more wells operating, said the Natural Gas Supply Association on Thursday in its winter-outlook report.
The group expects the slowing economy could temper demand for gas, particularly for industrial uses, although demand from power companies is forecast to increase slightly.
The group, which represents gas producers, does not attempt to project retail prices.
But Patrick Kuntz, a vice president for natural-gas and crude-oil sales at Marathon Oil Co. and the association’s current chairman, said various factors suggest wholesale gas prices this winter are likely to be similar to last winter’s.
“We expect flat price pressure,” Kuntz said at a news conference.
Kuntz said that despite the supply disruptions from the gulf hurricanes, “we expect a healthy level of storage” of natural gas going into this winter as producers drill more wells, especially in pursuit of unconventional gas resources.
Production this winter is expected to be 57.5 billion cubic feet a day, or 7.9 percent higher than last winter, the association said, with an expected 3,450 billion cubic feet of gas in storage by November.
“It’s the highest level (of production) in 35 years,” Kuntz said.
