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Gold/Mining/Energy : Westfort Energy Ltd. (WT-T) -- Ignore unavailable to you. Want to Upgrade?

To: AL Berta who wrote (729)	7/3/1998 5:09:00 PM
From: Tom Drolet	Read Replies (1) \| Respond to of 1288

AL : Thxs. Sounds like when I lived in Oakville and commutted to downtown Toronto. I am in the energy business myself ( electricity/ a bit of gas) and I can add the thought that the demand for gas will increase as new merchant electrical gen plants all go the way of simple Gas Turbines( GT sets) or Combined Cycle Gas Turbines ( CCGT sets ). The big debate in that game is of course the lower capital cost investments in GT and CCGT vs new hydraulic/ coal or nucs is the way to go. The only real risk in the business is the price of gas. With our WSB gas at about $ 2 Cdn at the Toronto gate vs Gulf gas at $ 2.75 US at New York, the gap is big. As more pipe is built to bring WSB gas east(Alliance) then WSB gas should go up in theory to equalize with Gulf gas in one big stable market ( well good theory). Trouble with this picture is that more and more gas is being found everywhere-- but especially in the gulf. It may end up that prices equate but at the lower Gulf end as a result of oversupply in the near term and the extra pipe( more capacity than needed in the 2000-2004 time period). Good for Elec gen with gas not so good for the price of gas for the WT's of this world. Anyway-- just some rambling thoughts. Tom D.