Natural gas producers appear to be setting themselves up for a fall

09/13/2010 | Wall Street Journal, The

Exploration and production companies in the natural gas industry seem to be spending on expansion at a rate that is likely to bring them down, according to The Wall Street Journal. Despite price increases, the average return on capital for the sector since 1991 has been 6.1%, a modest figure for such a high-risk business, according to Energy Income Partners. For every $1 received this year, exploration and production companies will reinvest $1.36, experts said.

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Wall Street Journal, The

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