Hefner on the Topic of the Future Decline of Global Natural Gas Prices

(While most others are concerned about the continuation of steep global natural gas prices, Hefner believes those prices will decline.)


Hefner's global natural gas price predictions



Hefner's earlier U.S. natural gas price predictions


At major turning points in the natural gas industry, Hefner has a record of accurately predicting the long-term direction of natural gas prices largely based upon his understanding of the vastness of natural gas resources. For instance, in the first half of the 1980’s, when U.S. natural gas prices were at then record highs and nearly all prognosticators were predicting continued high prices, Hefner both wrote and spoke – on several occasions – that natural gas prices were falling. Hefner was proven correct on the direction of U.S. natural gas prices, as, at the time he made the predictions (see below), natural gas wellhead prices averaged $2.59 per Mcf and were predicted to rise for the coming decade by U.S. government agencies, most industry sources and energy experts. By 1986 natural gas wellhead prices had fallen below $2.00 per Mcf and not only did the annual average natural gas wellhead price stay below $2.00 per Mcf for 9 of the next 10 years, it was not until the year 2000 that the annual average wellhead price rose higher than it had been in 1983!