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To: Think4Yourself who wrote (55917)	12/2/1999 4:56:00 PM
From: Think4Yourself	Respond to of 95453

I posted this on RRC today about industrial customers who had dual-fired boilers (Heating oil and/or NG). Thought it might generate some commentary here. What is interesting to me is that last year prices appear to have favored neither (HO: (42.35=$.14) vs NG(62.20=$13)). In this case NG stocks will drop faster than last year (which they are) even if the weather is as warm. Kollmnh, not sure about your fuel switching comment - what are you trying to say? Using the energy conversion rate of 6 mmcf = 1 BOE to compare prices suggests that EVERY customer who has a fuel choice is using only NG at these prices. It's simple: $2.50/mmcf * 6mmcf/bbl = $15/bbl. Heating oil is $.66/gallon, and there are 42 gallons/bbl. That means that they can use $15 in NG or $27 in heating oil to get the same heat energy. This is an absolute nobrainer.