Prices should average $3.25 to $ 4.25 mean average about $3.80 during 2013-2014

Consumption

. EIA

expects that natural gas

consumption will

average 69.7 billion

cubic feet per day

(Bcf/d) in 2013 and 69.4

Bcf/d in 2014. Despite projected declines in electric power

consumption from 2012 levels, consumption of natural gas for

electric power generation remains high by historical standards and

reflects a structural shift toward using more natural gas for power

generation.

Production

. EIA expects continued growth in natural gas

production, driven largely by onshore production in shale areas. In

particular, production in the Marcellus Shale areas of Pennsylvania

and West Virginia is expected to continue rising, as recently drilled

wells become operational. This month's STEO expects that total

marketed production will increase from 69.2 Bcf/d in 2012 to 69.8

Bcf/d in 2013, and drop slightly to 69.5 Bcf/d in 2014. EIA

expects growth in Lower 48 onshore production will continue

through 2014, and will be offset by Gulf of Mexico declines next year