DENTON, TX, Sep 07, 2010 (MARKETWIRE via COMTEX) -- Topaz Resources, Inc. /quotes/comstock/11k!topz (
TOPZ 0.45, +0.02, +3.45%) , today reported that while natural gas prices are forecasted to rise, natural gas will remain attractive compared to the price of oil, according to the U.S. Energy Information Administration (EIA).
Industry forecasts supported by the Henry Hub Natural Gas Futures, which set the prices for the sale of natural gas produced by Topaz (see
www.cmegroup.com/trading/energy/natural-gas/natural-gas.htm), predict that natural gas prices will climb to over $4.35 per Mcf this year and continue to a range of $4.40 to $5.26 per Mcf during 2011.
Regardless of increasing natural gas prices, the EIA's Annual Energy Outlook for 2010 predicts that the ratio of low sulfur light crude oil prices to Henry Hub natural gas prices on an energy equivalent basis will remain high.
This will make natural gas more attractive as a substitute for petroleum in some transportation uses and in GTL feedstock, which also will increase demand for and prices of natural gas, yet even with these increased prices, natural gas still will remain priced attractively compared to oil.