Will Natural Gas Prices Keep Rising in 2013?

One of the most popular questions among energy investors this year is will natural gas prices keep rising in 2013, or will their price climb come to an end?

We asked Money Morning Global Energy Strategist Dr. Kent Moors for the scoop.

Natural gas has been one of the few bright spots in an overall negative year so far for commodities.

NYMEX futures are trading at $3.65 per million BTU. Although off its high for 2013, this price is nearly double the low natural gas hit on April 12, 2012 at $1.87 per million BTU.

Moors said natural gas has higher to go in 2013. In fact, Moors forecast earlier this year the price would rise to as high as $4.65 per million BTU by October.

Drilling giant Halliburton (NYSE: HAL) shares Moors' bullish outlook. A few months ago, Halliburton CEO Dave Lesar said that he anticipates natural gas prices rising to above $4, which in turn may reinvigorate the company's gas drilling business next year.

The Main Reasons Why Natural Gas Prices Will Rise in 2013

One reason Moors cited for his rosy outlook on natural gas prices is the fact that gas companies are focusing on their cost structure.

Over the last year of low natural gas prices, companies have reduced the number of opens or expansions of drilling pads, which should cap the amount of natural gas hitting the market. Even Halliburton says it anticipates no increased gas drilling activity for this year.

Another main reason for higher natural gas prices is the switch to gas from coal in power generation, triggered by looming regulation in the energy industry.

The Obama administration is in part behind the increased use of natural gas as a "transition fuel" toward the renewable energy era and away from hydrocarbons. In a recent climate change speech at Georgetown University, President Obama further underscored that he thought the United States should strengthen its position as a top global natural gas producer.

And this controversial proposal will help the United States reach that goal…