Sure hope they are right...

http://blogs.barrons.com/focusonfunds/2013/04/05/high-on-gas-week-s...

The price of natural gas is surging on Friday. Among the week’s highlights: A steep fall in the domestic natural gas stockpile and a bullish report by Goldman Sachs (GS).

On Thursday, the U.S. Energy Information Administration said underground gas storage fell by more than expected, pushing the stockpile to 2.1% below the five-year average for this time of year, according to Dow Jones Newswires’ Jerry A. DiColo. From DiColo:

“The reduced amount of gas in storage still has the market’s attention,” saidGene McGillian, a broker and analyst at Tradition Energy. “The supply outlook is much tighter than people anticipated.”

Associated Press

Then there was the late-week Goldman report, which calls for gas to reach $4.50 to keep storage levels up to snuff:

We believe Henry Hub natural gas prices will need to rise to $4.50/MMBtu in 2H 2013 to keep gas storage levels near balance and stimulate greater drilling activity in preparation for the beginnings of the demand response to the shale gas transformation in 2014. We raise our 2013 Henry Hub natural gas prices to $4.15/MMBtu from $3.75/MMBtu as we believe a further 200 Bcf demand shift to coal from gas is needed to keep gas storage in balance. We continue to expect $4.25/MMBtu in 2014, the midpoint of a $4.00-$4.50/MMBtu weather-normal range for natural gas we expect through 2018. While gas sentiment has improved, we believe the Street is still not appreciating a continuation of favorable storage trends vs. the 5-year average in 2Q 2013. We continue to have a multi-sector approach for natural gas exposure – our favorites include SWN/COG among E&Ps, CLD for coal, HAL/BAS/NBR for oil services and NRG for IPPs.

Gas storage surplus is gone, and production is showing some signs of decline. The gas storage surplus vs. the 5-year average, +925 Bcf a year ago and projected by us a month ago would end March +200 Bcf, is now a deficit of 37 Bcf as reported on April 4 for the week ended March 29. Additionally, we have seen two months of sequential production declines reported by the EIA (December 2012 and January 2013). While there are some weather reasons for both of the above, the bottom line is that we will need a greater shift back towards coal from natural gas than previously was anticipated in the next 6-9 months.

The United States Natural Gas Fund (UNG), tracking gas futures, is up by 4.1% Friday, First Trust ISE Revere Natural Gas Index Fund (FCG), which tracks the stocks of companies in the sector, is ahead by 2.3%. United States 12 Month Natural Gas Fund (UNL), another futures-market tracker, is up by 3.5%. iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ) is up 4.3%.