Market Hotline: Canadian gas supply strength to rein gas price rise

05/06/2002
While the general outlook for the North American gas market has brightened this year, there is much debate over whether this improvement will be driven mainly by supply or demand. It’s important to isolate the dominant driver because that gives us a sense of the scope of the gas upturn in 2002.In 2001, the notion of "demand destruction" emerged as the dominant driver. A gas price spike that started the year before, in tandem with a sluggish economy, had crushed demand growth, especially in an industrial sector that scrambled to switch to oil from gas and to reduce overall consumption.That trend was exacerbated by a mild winter, and the result was a gas price that slipped b...
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