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Mostly moderate softness dominated the cash market Tuesday, as a falling screen and moderating weather were the primary influences. Price movement ranged from 1-6 cents down at several western points, while generally larger drops in the East went from about a nickel to down about a quarter on the Appalachian pipes. The PG&E citygate managed to eke out a small gain.

Noting the mild temperatures across the country, favorable arbitrage spreads and “ambitious distributor refills,” the industry continues to “inject a significant amount of natural gas into storage,” said UBS Warburg analyst Ronald Barone last week in his weekly research note. Even though national supplies now stand at 958 Bcf versus 1,117 Bcf a year ago, Barone said he expects to see the storage deficit drop and perhaps post a surplus by this summer.

Noting the mild temperatures across the country, favorable arbitrage spreads and “ambitious distributor refills,” the industry continues to “inject a significant amount of natural gas into storage,” said UBS Warburg analyst Ronald Barone last week in his weekly research note. Even though national supplies now stand at 958 Bcf versus 1,117 Bcf a year ago, Barone said he expects to see the storage deficit drop and perhaps post a surplus by this summer.

New initiatives proposed by the Minerals Management Servicecould contribute an additional 500 Bcf to 1 Tcf/year of gasproduction between 2004 and 2006, according to MMS Director WaltRosenbusch.

New initiatives proposed by the Mineral Management Service couldcontribute an additional 500 Bcf to 1 Tcf/year of gas productionbetween 2004 and 2006, according to MMS Director Walt Rosenbusch.

Kinder Morgan, Inc. announced plans to contribute $300 millionin assets to Kinder Morgan Energy Partners, L.P., the company’smaster limited partnership. The largest asset to be contributed isKinder Morgan Texas Pipeline, formerly MidCon Texas, a 2,600-milenatural gas pipeline system that extends from South Texas toHouston along the Texas Gulf Coast.

Unconventional gas resources — coalbed methane, tight gassands and gas shale — could contribute as much as one quarter ormore to the 30 Tcf demand market that the natural gas industryexpects to materialize over the next two decades, according to anew paper released last week by the Energy InformationAdministration (EIA).

Unconventional gas resources — coalbed methane, tight gassands and gas shale — could contribute as much as one quarter ormore to the 30 Tcf demand market that the natural gas industryexpects to materialize over the next two decades, according to anew paper released by the Energy Information Administration (EIA).

El Paso Energy earnings hit a new record for 1998, and each ofthe company’s operating segments was credited for the success. ElPaso diluted earnings per share rose 16% to a record $1.85 in 1998from $1.59 in 1997. Consolidated earnings before interest expenseand income taxes (EBIT) for 1998 increased to a record $644 millioncompared to $578 million in the year ago period.