US natural gas prices will remain stable in the $3-$4/MMBtu range for the rest of the year, three-quarters of the global energy executives surveyed by consulting firm KPMG said in a poll released Friday.
"Greater assurance of supply appears to be stabilizing commodity price environments and enabling large investments," KPMG oil and gas leader Regina Mayor said in a statement. "At the same time, marginal production remains 'shut in' which could quickly be reinstated should the price picture become even more robust for gas."
The surveyed polled 100 senior executives at global energy companies, KPMG said.
While 73% agreed prices US gas prices would be stable in the $3-$4/MMBtu band, 62% said this low price environment would lead to increased investment in US manufacturing operations, KPMG said.
More than one-third of those surveyed thought the Northeast US would see the most investment, followed by the Midwest (22%).
"The high production rates of natural gas and its reputation as a low-cost alternative to other energy sources continue to contribute to the recent growth in manufacturing, and as companies begin to monetize these new assets we'll also see significant benefits for the local and national economies," Mayor said.
The shale boom has convinced two-thirds of the executives surveyed that the US will be energy independent by 2030, KPMG said. There was also a 10% decrease in the number of executives who thought the US would ever be energy independent, from 27% of those surveyed to 17%. Among those surveyed, 23% thought the US would be energy independent by 2020, KPMG said.
"Increased domestic production, particularly from shale assets, is having a profound impact on the global energy sector, introducing new sources to the energy matrix," KPMG energy and natural resources sector leader John Kunasek said.
Plentiful production and low, stable prices have global executives convinced there will be more reinvestment and new investment in shale plays, Kunasek said.
