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

To: Tomas who wrote (12172)	8/14/2002 3:02:29 PM
From: Tomas	Read Replies (5) \| Respond to of 206203

US on verge of major gas shortage Oil & Gas International, August 13 (8/13/2002 - OGI: Washington) Industry analyst Raymond James & Associates says the United States in rapidly approaching another major shortage in natural gas supply that could emerge as soon as this winter. In a report released yesterday, Raymond James said numerous indicators point to a prolonged shortage for the foreseeable future. The new report points out that quarterly results from the largest gas producers in the USA show a decline in production for the fourth consecutive quarter - 0.7% this last quarter and on a year-to-year basis, 5.1%, adding that, "These results remain in line with our forecast that US gas production would be down between 5% to 6% this summer on a year-to-year basis. Furthermore, with drilling activity still at depressed levels, natural gas production will likely continue its rapid deterioration for the foreseeable future." Raymond James says it expects this quarter's gas volumes to maintain the downward trend that, it says, commenced in 2001, and points out that the increase in gas drilling activity that was expected in the second and third quarter of this year has not occurred, despite E&P companies' recently upwardly revised capital spending plans. "The gas rig count remains at depressed levels and far short of the number required to increase production," the report states. "As a result, it is very likely that we may see a decline more in line with the trend line from the last quarters." Raymond James added, "Even if activity levels were to resume the feverish pitch seen in early 2001, it would take at least six to 12 months for the incremental production to begin reducing the current rapid decline rate."