EOG sees lower U.S. natural gas output in 2009

NEW YORK, Feb 5 (Reuters) – EOG Resources Inc (EOG.N) Chief Executive Mark Papa said he expects U.S. natural gas production will begin to drop by mid-2009 and will end the year down 2.5 billion cubic feet per day, or about 4.3 percent, from 2008.

Weak demand from industrial users will more than offset the supply decline, he told an investor conference call on Thursday, but prices will eventually rebound.

Benchmark natural gas futures on the New York Mercantile Exchange were trading at $4.588 per million British thermal units on Thursday, down from about $6 at the end of 2008 and down 66 percent from highs reached last July.

Reuters