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To: NucTrader who wrote (44820)	12/7/2000 1:21:54 AM
From: patron_anejo_por_favor	Respond to of 436258

<<Why haven't the natural gas holders such as APA responded to this to any degree>> The producers, such as APC, APA, and MND have done what they can, and production IS up slightly. The higher prices are due to: 1) insufficient supply/inadequate exploration efforts (the above cos. would have liked to do more, but EPA regs and an energy-unfriendly admin have stifled their efforts by such rules as forbidding new offshore drilling off the California coast) 2) Impaired distribution-again, environmental plus the "not in my backyard" attitude of the population of certain "new age" west coast states has resulted in a wholly inadequate NG delivery system relative to increase in demand. In addition, a massive EPG pipeline explosion over the summer has exacerbated the problem (which will not be relieved before the end of this winter, IMO). 3) Increased demand. Almost all new homes are heated with gas (and as we all know, home construction has been on a ferocious tear for years. New power plants use NG predominantly as an energy input because of its relatively low air pollution properties. The "New Economy" runs on the back of our old friend, Ready Kilowatt, therefore much increase in demand from this source. 4) Finally, we've had mild winters 3 years in a row. This year we aren't so lucky, major cold fronts coming through and EARLY in the season. It will be a long, cold, expensive winter for the natural gas consumer (which is most of us).<NG>