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Be careful what you wish for, voices of experience tell us. In July 2008, when the benchmark Henry Hub gas price was $13/MMBtu, the producers fervently wished they could get their hands on more gas. Since then, demand has dropped due to a worldwide recession, just as new supplies are increasing. While we currently have an oversupply, most energy economists predict that worldwide gas demand will continue to increase once the recession eases and the economies of China, India and Latin America renew their expansion. In this context, it is appropriate that the stage is being set for the next natural gas frontier—gas production from methane hydrates.
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