ICF Study Sees Industry Ingenuity & Technological Improvements Driving Significantly Higher Natural Gas Production in the Mar...
April 24 2014 - 12:00PM
Business Wire
ICF International (NASDAQ:ICFI), a leading provider of
consulting services and technology solutions to government and
commercial clients, has released its ICForecast Strategic Natural
Gas Outlook for the second quarter of 2014. The study highlights
the near- and long-term future of natural gas prices and market
economics including a national and regional look at supply and
demand dynamics.
The ICForecast Strategic Natural Gas Outlook for the second
quarter of 2014 highlights a significant increase in production in
the Northeast U.S. from the Marcellus Shale and the Utica Shale.
For Marcellus, natural gas production growth continues unabated,
driven by producers’ continued improvements in drilling and
fracturing technologies and techniques. High production continues
to be a dominant theme despite decreased rig counts – another
indication that innovative uses of technology are contributing to
favorable production economics.
“Despite a slight downturn in the Marcellus rig count over the
past year, output has grown as producers reduce drilling time and
increase the production per well. The Utica, which was originally
expected to have higher oil production, has had significant growth
in gas production,” said Frank Brock, senior energy market
specialist for ICF International. “As a result, ICF has increased
its production projections for both the Marcellus Shale and the
Utica Shale to a combined total of 25 billion cubic feet per day by
2020.”
Even with strong production gains, natural gas prices are
currently being supported by increased storage demand stemming from
the recent long and cold winter. ICF projects gas prices to firm
through the end of 2014 – albeit somewhat lower than the current
New York Mercantile Exchange futures strip. For 2015, the company
forecasts the potential for gas prices to trend lower, as
production continues to grow and demand stays a step behind.
However, ICF projects gas prices firming from 2016 through 2020 as
increased demand from new liquefied natural gas export projects,
increased exports from Mexico and new industrial demand tighten the
supply/demand balance. Additionally, the recent court decision
upholding U.S. Environmental Protection Agency regulations will
continue to reinforce the trend away from coal-fired generation and
facilitate new natural gas-fired power generation development.
“The uncertainty over the timing of new demand sources and the
midstream infrastructure needed to bring new supplies to market
create the potential for increased price volatility through the end
of the decade,” said Brock.
The ICForecast Strategic Natural Gas Outlook is a quarterly
report that provides a comprehensive projection of gas supply,
demand, pipeline flows, price and basis for the U.S. and Canada as
well as for regional markets for 25 years forward. The study is
produced by ICF's natural gas market experts based on results from
the Gas Market Model (GMM®) - ICF's proprietary model of the North
American gas market. The report can be used, for example, to
examine the impact of pipeline expansions due online in the fall of
2014 on prices at key natural gas trading points throughout the
U.S. and Canada.
For More Information
- ICForecast Strategic Natural Gas
Outlook
- ICForecast Energy Outlook
About ICF International
ICF International (NASDAQ:ICFI) provides professional services
and technology solutions that deliver beneficial impact in areas
critical to the world's future. ICF is fluent in the language of
change, whether driven by markets, technology, or policy. Since
1969, we have combined a passion for our work with deep industry
expertise to tackle our clients' most important challenges. We
partner with clients around the globe—advising, executing,
innovating—to help them define and achieve success. Our more than
4,500 employees serve government and commercial clients from more
than 70 offices worldwide. ICF's website is www.icfi.com.
Caution Concerning Forward-looking Statements
Statements that are not historical facts and involve known and
unknown risks and uncertainties are "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995.
Such statements may concern our current expectations about our
future results, plans, operations and prospects and involve certain
risks, including those related to the government contracting
industry generally; our particular business, including our
dependence on contracts with U.S. federal government agencies; and
our ability to acquire and successfully integrate businesses. These
and other factors that could cause our actual results to differ
from those indicated in forward-looking statements are included in
the "Risk Factors" section of our securities filings with the
Securities and Exchange Commission. The forward-looking statements
included herein are only made as of the date hereof, and we
specifically disclaim any obligation to update these statements in
the future.
ICF InternationalErica Eriksdotter,
+1-703-934-3668erica.eriksdotter@icfi.com
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