Renowned energy investor Tim Guinness has forecast the price of US natural gas could increase by 300% in the next five years as supply is choked off and demand grows for gas ahead of coal.
The founder of Guinness Asset Management and manager of the £186m Guinness Global Energy fund said the US natural gas market is suffering from “overly depressed prices”. He has tipped it to enter an “exciting recovery phase” which could see the gas price rise from its current level of $2 to $3 per million British Thermal Units (BTU) to hit $8 over the next five years. “Natural gas prices in the US have been depressed by developments in horizontal drilling. They are now back to levels last seen in 2002 and have diverged significantly from prices in Europe and Asia. We believe this is n...
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