XTO Energy (XTO) CEO Bob Simpson sees natural gas bottoming around here and then spiking up to $7 next year (see their website ) . It was a perfect storm of a collapsing economy, huge new discoveries, and the coolest summer on record that took us from $13.50 to $3.10. Since then companies have slashed gas exploration and drilling budgets, taken the rig count down from 1,600 to 700, and that number is still falling at a precipitous rate. Total onshore production is down by 3% and will plunge by 10% by the winter. XTO is one of the largest independent oil and gas producers in the country, and Simpson is one of the savviest players in the space. He hedged all of his firm’s 2009 oil production at $96/barrel, and 40% of his gas production at a stunning $9/BTU. NG has sold off 15% in the past week, as I expected, and this could be the beginning of the final wash out if no hurricanes show up. Keep that natural gas ticker (NYSEARCA:UNG) ticker glued to your desktop. There certainly isn’t much else to buy out there right now.