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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: stan_hughes who wrote (8701)	3/4/2002 3:40:54 PM
From: Cal Gary	Read Replies (2) \| Respond to of 24922

Hi Stan Certainly many were expecting a major low to be put in NG this spring. You're not alone in your strategy of waiting for basement prices. I talked to a NG marketing friend about the illogical petro market (as though that was anything new <g>). What I took away on the weekend : - winter weather is too late to affect near term prices - slightly less than 1 tcf in storage, won't help near term prices (so far so good) - latest strengths in crude, NG and liquids were driven by short covering - summer weather expected to be above normal temp and dry in all the major US markets - latest power plants built or coming on line are predominately NG fired - summer speculated to suck up NG production and maybe even storage based on their models - NG is gaining a summer face, more and more each year - was not surprised with +$3.20 1 year prices, expects higher given storage does strink in the summer or at min not grow - winter weather is alway a factor, the uncertain variable, therefore the annual respect - he believes many NG producers have already scaled back net new drilling. At some point declines will make material impact on these companies and market at large. Disclaimer: So these are my notes. Hope anyone can benefit and redraw conclusions if need be. I believe as long as the US war machinery and infrasture is in the gulf, anything is possible, but the probability of something happening is higher. Such is the rhythm of life of markets.