Conoco Inc. agreed yesterday to use Planalytics’ WeathernomicsGas Buyer, an Internet-based tool for natural gas buyers andsellers that suggests ways to reduce risk and exploit opportunitiesfrom weather-driven changes in gas prices.

According to Planalytics, the tool does not forecast gas prices,but rather predicts the turning points and direction of gas pricechanges by combining long-range weather intelligence, American GasAssociation inventory change forecasts, real-time Nymex futurescontract pricing and proprietary technology.

“The gas markets have been extremely volatile this year, andthis is a tool that promises to help us see more clearly into thefuture direction of gas prices,” said Jim Duncan, who manages gasmarket analysis for Conoco Gas and Power Marketing.

From January to October 2000, the average year-to-date cost tobuy natural gas at the month-end settlement price was $4.10 MMBtu.Over the same period, Planalytics estimates that the average costusing the Weathernomics tool was $3.41 MMBtu.

Wayne, PA-based Planalytics now serves more than 120 corporateclients, including Dow Hydrocarbons and Resources, Cargill andMonsanto. Conoco is its first major energy client.

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