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

To: Think4Yourself who wrote (81859)	12/15/2000 4:25:18 PM
From: tommycanuck	Respond to of 95453

The pipelines out of the producing areas in Canada are the Trans Canada, Northern Border, Alliance, PGT, and Westcoast lines. With the producers knowing for some time that extra capacity was coming online, my perception is that they started to plan towards the best economics (and some political reasons)for their products some time ago. As time passed, knowing that Alliance was on the horizon, some of the firm service contracts were allowed to lapse, thus allowing them to gain some flexibility in where their gas went and thus creating the greatest return. In previous years when there was no capacity the producers were caught but now that pipeline capacity is expanded and the corresponding supply has been difficult in obtaining they are enjoying the best of both worlds. High prices and competitive transportation costs.