Whitepine... Here's that Business Week item : Pressure on NG:
THE PRESSURE IS BUILDING ON NATURAL GAS
By Stephanie Anderson Forest in Dallas, with bureau reports
When the U.S. entered last winter with unusually low amounts of natural gas in storage, many analysts
predicted that rising demand in the face of supertight supply would lead to stratospheric prices. Boy,
were they right. Now, with natural-gas prices rising again after having settled back to about $5 in
March, many observers are predicting an encore. Indeed, so far in April, prices have climbed about
10%, to $5.55. A scorching summer could bring further trouble. The reason for worry: With producers
still playing catch-up on supply, current inventories of natural gas sit at record lows. As the industry
begins its critical April-to-October stretch, when storage tanks are refilled for the next winter,
natural-gas inventories stand at 627 billion cubic feet. That's 39% below a year ago, and the lowest on
record at the start of a refill season, according to the Energy Dept.'s Energy Information Agency. At
that level, it will be difficult to shore up reserves in time for winter. The deficit could lead to price
spikes as early as this summer. California's energy crisis, combined with an extremely hot summer in
that state and others such as Texas that consume large quantities of gas-fired electricity, could send
prices way up.
Good luck on those energy selections..
dlo |
