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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: JGreg who wrote (47454)	7/7/1999 8:44:00 AM
From: Think4Yourself	Respond to of 95453

There is an API-like organization that reports Nat Gas supply figures called the AGA. Here is WHY the connection exists (from the AGA web site) "The natural gas industry currently provides about 25 percent of the energy consumed in the United States, and accounts for 31 percent of the nation's energy production. It supplies more than one-half of the energy consumed by residential and commercial customers, and about 41 percent of the energy used by U.S. industry. " also "Natural gas use has increased by 35 percent over the last decade, and is projected to grow by 40 percent by 2015." The above quote was from before the EPA mandated stricter emission requirements for power plants. This will dramatically increase the amount of Nat Gas used for energy production (Much cleaner burning than coal). It is in the process of happening right now. There are other obvious advantages for the electric company (If you could pass on the costs would you rather heat your house with coal or natural gas?). Gas is usually found with oil. Oil is easily transported between countries while NG is not. The glut in oil dramatically reduced drilling for oil in the US. Small E&P's that produce both had much less funds available for drilling due to the low oil prices. This reduces the output of NG as a side effect. NG output decreases more rapidly than oil in a well (depletion). Put all the above together and you may conclude that the oil glut will lead to a NG shortage later this year. Hope this helped.