With the problem of outsized production and storage oversupply diminishing, a new report by Simmons & Co., Houston, projects that 2013 will be a better year for natural gas. Pricing should improve, as sub-$3 prices fade away “in the rearview mirror” of 2012.

The report predicts a natural gas price range of between $3.50 per thousand cubic feet (Mcf) and $4.50 per Mcf long term, compared with the current Nymex Cal 2013 of $3.75 per Mcf and a Cal 2014 of $4.10. The Energy Information Administration estimates an average price ...