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

To: VLAD who wrote (30536)	10/9/1998 1:50:00 PM
From: david james	Read Replies (1) \| Respond to of 95453

Friday, October 9, 1998 Natural gas shortage worsens BY CAROL HOWES Calgary Bureau The Financial Post The shortage of natural gas in Alberta this winter is shaping up to be more severe than many in the industry predicted, analysts said yesterday. TransCanada PipeLines Ltd.'s forecast it will have a shortfall of 900 million cubic feet a day came as a surprise to the industry, which is preparing for additional capacity of 1.1 billion cubic feet a day with the expansion of TCPL's system and the Northern Border project. Some analysts had been predicting for months a shortage was imminent, but Wednesday's announcement confirmed their worst suspicions. "Most people thought it would be 300 million to 400 million short," said Martin Molyneaux, a gas analyst with FirstEnergy Capital Corp. Based on its projections, TCPL said demand will reach 13.8 billion cubic feet a day from November through March, with only 12.9 billion cubic feet a day available. Drilling has slowed to such a pace only 190 rigs are active, compared with 470 rigs a year ago. A U.S. gas trader, who asked not to be named, said while a potential shortage has been factored into the price of Alberta gas, which has been closing in on the U.S. price, the news is expected to have an even greater impact. Alberta natural gas is trading at $3 per thousand cubic feet for the winter and $2.72 per thousand cubic feet for 1999. The price differential between Alberta and U.S. gas has dropped to 53¢ from about $1.40 a year ago. The big winner will be Alberta Energy Co., which bucked the trend this summer and expanded its drilling program by 20%. Not only is it catching up to Amoco Canada Petroleum Ltd. as Canada's largest gas producer, but it has the largest storage facility in the country with capacity for 85 billion cubic feet of gas. canoe.ca

To: VLAD who wrote (30536)	10/9/1998 3:54:00 PM
From: RGinPG	Read Replies (5) \| Respond to of 95453

After investing in this sector heavily for over a year now, I'm not sure what value is. The action yesterday was scary in that the OSX easily broke through to new lows without much ado. We needed the positive activity today even in the face of falling oil prices (again) to give me some confidence that this is not just a continuation of the major downtrend that began in May. If we can stay at least flat for a couple of days, the daily stochastics will give a buy signal. osxstocks.com