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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Second_Titan who wrote (1238)	5/17/2001 2:36:37 AM
From: schrodingers_cat	Respond to of 206200

Thanks Que, looks like distillate / natural gas switching made a big difference to the stock draw this winter. I guess what all this adds up to is this : NG demand will grow only if the price is right. Present prices seem to be too high. Now what if the price of NG falls below the price of resid? Are there enough NG plants around to take the market share of the resid burning plants? Does this give us a price floor? One other thing I have tried to estimate was this : How much production growth is likely from all the drilling activity? It looks like about 9000 development wells a year are required to keep production flat, and current activity is twice that. What I don't know is how much the average new well would produce in its first year. I'd appreciate it if someone could give me an estimate. This is only intended as a very rough guess and I know I am ignoring a bunch of issues.