Nat Gas Oversupply Likely For a Long Time: RCH Energy
In the last year natural gas production has grown over 7 percent despite prices going down, Robert Raymond, principal and founder of RCH Energy, told CNBC Monday.
"What we're seeing in the natural gas market here is we're sort of in year two or three of an ultimate capitulation in the price of gas. But, this can go on for a long time," Raymond said.
"The concept of a chronically oversupplied market relies on a shifting supply curve and one in which the demand curve doesn't keep up. I'm fairly confident that the demand curve hasn't shifted 7 percent in the last 12 months," he explained.
The rebalancing of supply and demand after a technology is applied is measured typically in half decades and decades, added Raymond.
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