OGJ Newsletter

01/15/2001
Market MovementPower demand to sustain high gas pricesWhile cold weather has sustained US natural gas prices at unprecedented levels, the outlook for continued high gas prices in the coming decade owes more to burgeoning demand for gas from the electric power sector.That's the view of Ed Krapels, director of Energy Security Analysis Inc.'s natural gas and power practice, who contends that demand from the electric generation sector is the main culprit for extreme price volatility in the natural gas market."Gas prices will average $6[/MMbtu] in years when hot summers follow cold winters and $3[/MMbtu] in years when cool summers follow mild winters," Krapels said. "This is the centra...
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