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Outline

1	SHORT - TERM NATURAL GAS OUTLOOK National Association of State Energy Officials State Heating Oil and Propane Conference August 7, 2006 Barbara Mariner-Volpe, Energy Information Administration (EIA) Barbara.MarinerVolpe@eia.doe.gov
2	FACTORS AFFECTING GAS MARKET OUTLOOK Returns to drilling; Recovery from hurricanes Weather Economic Growth Demand robustness/destruction/switching International markets pipeline and lng supplies world oil market/prices
3	Wellhead Natural Gas Prices, 1990-2007
4	Gas Prices Have Led to Record-High Drilling Rates
5	Hurricanes Katrina and Rita Relative to Offshore Oil and Natural Gas Production Platforms
6	Production was reduced 800 Bcf as a result of 2005 Hurricanes
7	Contiguous U.S. LNG Import Terminals
8	LNG import facilities in the continental United States had spare capacity through much of 2005 and early 2006 The spot market is still a small part of the market. Low utilization rates at lower 48 facilities. The expected volumes under long-term contracts have not materialized. New LNG production facilities in Nigeria and Trinidad and Tobago have taken longer than expected. The new Excelerate Energy Bridge has delivered only two cargoes of LNG to date.
9	Production Recovering From Hurricane Loss in 2005
10	Imports are Expected to Increase in 2007
11	Natural Gas Stocks Are Well Above Five-Year Average
12	Natural Gas Henry Hub Spot Prices (Base Case and 95% Confidence Interval*)
13	Natural Gas Spot & West Texas Intermediate Crude Oil Prices
14	AFTER DECREASING IN 2005 and 2006, GAS CONSUMPTION IS EXPECTED TO INCREASE IN 2007
15	Residential Sector Expenditures During The Heating Season, 2001-2007 (Billion Dollars)
16	Natural Gas Prices to Electric Generators Fell in 2006 Relative to Oil Prices
17	To Sum Up:
18	Recent Natural Gas Reports