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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: jim_p who wrote (23865)	6/17/2003 10:11:41 AM
From: Tommaso	Read Replies (1) of 206209

In the left margin of that chart it says "1999 dollars." That means that the chart is not in dollar prices current at that time. The peak wellhead price of about $4.00 in about 1984 was, according to that chart, a current dollar price of about $2.66 in 1984, which has been increased on the chart to $4.00 to adjust for the 1984-1999 inflation, or loss of purchasing power of the dollar. The wellhead price is a pretty good estimate of the spot and hub prices current at that time. I am not saying that SOMEWHERE, SOME prices were much higher. I am saying that the chart you supplied indicates that the earlier peak (in currently quoted dollars) was about $2.66, and even in 1999 dollars (there has not been much inflation since then), the peak wellhead price shown on your chart is only $4.00. Therefore, the spikes of up to $10 in the last two years have been truly extraordinary. In discussions of natural gas prices and the effect of that on NG stocks, we very seldom use the final cost to residential consumers to judge the value of the stocks. infoplease.com Please realize that I am not questioning your information, but I certainly am pointing out that the chart does not support that information.

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