Anadarko Petroleum Corporation expects natural gas prices to rebound significantly from their current depressed status after 2014, Chief Executive Jim Hackett said Tuesday.
The Texas-based oil producer is “cautiously optimistic about natural gas in the long term,” Hackett told investors and analysts at the company’s annual meeting. “We feel beyond 2014 you get into very, very interesting territory.”
Anadarko sees natural gas trading between $4 and $6 per million British thermal units, up from their decade-low levels below $2.40 currently, according to a slide shown in the company’s presentation. In 2016, gas should be trading between $5 and $7 per Mmbtu. Hackett acknowledged that Anadarko is “a bit more constructive,” or optimistic about natural gas prices, than the market is.
The market for crude oil should remain strong due to the difficulty of providing new supply to meet demand, coupled with rising geopolitical tensions, Hackett said. The market for natural gas liquids, driven by the recent addition of petrochemical infrastructure in the U.S., “should stay very strong,” Hackett added.
