SOURCE: Energy Solutions, Inc.

March 17, 2008 10:54 ET

Natural Gas Prices: Who is in Control?

The Potential for Above-Average Natural Gas Storage Injections in April and May Is Very Strong; In Its Most Recent Analysis, Energy Solutions, Inc. Identifies How This Important Factor Could Break the Link to Crude Oil and Ultimately Be Responsible for Significantly Reversing Natural Gas Price Direction

VERONA, WI--(Marketwire - March 17, 2008) - Speculative investors are pushing commodity prices higher, and natural gas is just one of those commodities being impacted. With natural gas prices at levels not seen since the catastrophic hurricane season of 2005, many analysts are painting a very gloomy picture for natural gas buyers. However, Energy Solutions, Inc. believes the price outlook for natural gas buyers could improve considerably over the next 60-90 days.

"Natural gas is unique because foreign trade for the U.S. isn't at the same level as it is for many other commodities that have recently acted like a magnet for new money seeking big returns. With moderating temperatures, lower demand due to a slowing economy, and record snowpack levels in the Northwest for hydropower, natural gas storage injections could easily exceed historical averages. In addition, because summer through fall futures prices are consistently higher than current prices, the economic incentive to inject early in the season is very strong," said Valerie Wood, President of Energy Solutions, Inc. "Since natural gas is primarily produced and consumed within our own country, these factors represent potential price stability and that could make natural gas a less attractive commodity to investors seeking quick profits."

These conclusions are detailed in the company's most recent analysis, Natural Gas Prices: Who is in Control?, which takes an in-depth look at natural gas prices, supply and demand, storage inventories and LNG/Canadian imports. The analysis also explores how soaring crude oil prices, the value of the U.S. dollar, interest rate cuts, and a potential recession may impact natural gas prices. "This easy-to-read analysis is designed to help commercial and industrial users of natural gas increase their understanding of today's complex and frustrating natural gas market. In short, the analysis covers a myriad of issues impacting natural gas prices today and then identifies the market forces needed to bring natural gas prices back to more reasonable price levels for natural gas buyers," said Wood.

Through The Advisor, a monthly and weekly publication, and tailored consulting, Energy Solutions, Inc. provides timely information on market conditions, as well as recommendations on when and how much natural gas a business should consider purchasing for their heating and manufacturing needs. "Natural gas price rallies are a very stressful time for individuals who are responsible for their company's natural gas needs. While we can't change current price levels, we can make this difficult time more manageable and understandable by helping individuals gain the peace of mind that the right decisions are being made for their company. Remember, knowledge is power," said Wood.

For a complimentary copy of Natural Gas Prices: Who is in Control? or to sign up for a one-month free trial to The Advisor, a publication specifically designed for businesses, call (608) 848-6255, send your request to request@energysolutionsinc.com or go directly to www.energysolutionsinc.com

About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 50 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.

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