Dominate

In its latest study, the Gas Research Institute (GRI) predictednatural gas will dominate the market share among competing fuelsfor industrial energy demand over the next 15 years. Currently,industrial demand accounts for 45% of all gas consumption. Thestudy, released last week, was prepared by the GRI and Energy andEnvironmental Analysis Inc.

In its latest study, the Gas Research Institute (GRI) predictednatural gas will dominate the market share among competing fuelsfor industrial energy demand over the next 15 years. Currently,industrial demand accounts for 45% of all gas consumption. Thestudy, released yesterday, was prepared by the GRI and Energy andEnvironmental Analysis Inc.

If the results of last week’s Gulf of Mexico lease sale are any indication, the federal government is now feeling the effects of weak commodity prices and industry consolidation.

Yesterday’s Western Gulf of Mexico Lease Sale 174 brought inonly about one-sixth the amount of high bids the previous westernGulf sale garnered last year; however, a spokeswoman for oneindustry group downplayed the lackluster results.

Bears roamed the gas trading woods in full force Thursday,sending cash prices down by a dime or much more at nearly allpoints. The biggest declines of about 35-45 cents occurred at thepreviously high-flying Transco Zone 6 and Texas Eastern M-3citygates in the Northeast. Although some Zone 6-New York Citydeals were still being quoted above $3, the average there fell intothe mid $2.80s.

Thursday was an excellent day to pursue a sell-early, buy-latestrategy in the Gulf Coast, according to a marketer. He saw TranscoStation 65, Henry Hub and TGT SL uniformly start around $2 even,then get up to $2.03 before falling back to the mid $1.90s in lateactivity. He thought the early cash strength was based on thescreen rising a few cents, but a lack of fundamental demand failedto support the upticks

Small decreases of 2-5 cents were the order of the day Tuesdayat most trading points, although a few managed to hang in there atflat levels. Moderating weather played some part, but the screen’sretreat late Monday along with another small drop Tuesday set thesofter mood, sources said.