Mr. Bellamy: In the short run, barring some significant change in weather, futures prices are probably about right, and we're looking at $5 to $6 over the winter. For next year, EIA just came out with its short-term outlook; they're saying $5. That's slightly lower than the futures prices. I actually think you could see a weaker first and maybe second quarter, and perhaps much higher prices than some people expect in the back half of the year, as the drop-off in supply manifests itself in lower U.S. production. We should have a better supply-demand equilibrium towards the back half of the year.
TWST: What's caused the volatility this year? Has it been purely the increased supply?
Mr. Bellamy: The cause of volatility has been primarily decline in industrial demand coupled with significant increased supply that came on in 2008, primarily due to unconventional plays. In particular, the very prolific shale plays have increased supply. We're about 900 rigs down versus where we were this time last year, so eventually we're going to see that manifest itself on the supply side and find better equilibrium. But for now, storage remains high and the gas market is certainly oversupplied in the very short term.
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