Arthur Berman

Natural Gas. Prices are low and anticipated to stay low by most observers because of US overproduction in shale gas. Expects low prices will persist for most of 2011 with a little recovery at the end of 2011. Bullish on gas prices long but couldn’t say when. Have 20 years at most counting proof reserves. Once people start to realize it is a finite resource, there will be a price recovery.

Oil. Expected to return to higher prices. No supply problem yet but there is a production problem. World doesn’t seem to be able to produce more than 90 million barrels a day. Demand is growing globally and projections indicate a scarcity in North America in the next couple of years.

Have improved reserve replacement considerably in the last year or so and are claiming above 100%, which is pretty good. Well positioned for Liquefied Natural Gas LNG with some giant projects off the shore of northwestern Australia. Also some tremendous projects in the deep water gulf of Mexico.