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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: excardog who wrote (87218)2/14/2001 5:32:56 PM
From: Tomas  Read Replies (1) of 95453
 
Natural Gas Fuel Switching is Bigger than We Originally Thought
Raymond James Energy “Stat of the Week”, February 12

"It is apparent that fuel switching has now created a “floor” for natural gas prices
that is equivalent to the Btu content of heating oil.

While short-term natural gas prices may fluctuate above or below this “floor,” we expect longer-term natural gas prices to be supported by heating oil prices.
As the current heating oil futures strip suggests, natural gas prices should at least maintain a floor of roughly $5.50 to $6.00 per Mcf.
Accordingly, we still feel very comfortable with our annual natural gas price forecast of $5.75 per Mcf."

North American Natural Gas Supply is Not Responding to Increased Drilling

Increased Fuel Switching Is the Real Shocker
Widening Natural Gas vs. Heating Oil Spreads Drove Unprecedented Fuel Switching

How Sustainable is This Fuel Switching?

raymondjames.com
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