Nearly

North American exploration and production in 2000 will be nearlyall about gas and all about independents, with spending plans ofthe majors largely forsaking this country for opportunitiesoverseas. That’s one finding of Lehman Brothers, which from Nov. 6to Dec. 10 surveyed 320 companies in what it calls “the mostextensive study of oil company spending plans that has ever beendone.”

Natural gas futures were nearly unchanged at the close yesterdayas traders grappled with the conflicting fundamentals of storageand weather. By virtue of its 0.3-cent decline to settle at $2.285,January was the only futures contract month to lose ground. Incomparison, both the February contract and the 12-month strip wereup 0.6 cents for the session to $2.322 and $2.401 respectively.

While nearly all the production-area points held steady withchanges of no more than a penny or two in both directions, it wasdelivered prices in the Northeast, Midwest and California that gavethe cash market a taste of volatility Thursday. Northeast citygatesrepeated as the day’s big losers with declines from about 35-38cents (Transco Zone 6-NYC and Texas Eastern M-3) to more than 50cents (Iroquois Zone 2 and Algonquin citygate) as the regionexperiences a very slow warming trend from its early-week chill.Ranges were very large as prices fell steadily while tradingproceeded, one source said.

The cash market made a strong rebound Monday from the weekend’sprice plunge as nearly every point rose by 15 cents or more. Inmost cases the gains did not recover all of the price territorythat had been lost Friday. However, the Northeast—one of the fewregions seeing any weather close to resemblingwinter —didmanage to make up for just about all of Friday’s citygate declines.

Nearly all of the market points in NGI’s price survey declinedfor the second day in a row Monday amid mild weather, a fallingfutures screen and the return of some nuclear power stations. Whilepoints in the Northeast felt the sharpest declines ranging from adime to 20 cents, Chicago managed to fight off most of the bearishsentiment and registered a small drop of 2 cents.

Higher prices and production, partially offset by merger costs,pushed third quarter earnings of Consolidated Natural Gas up 90% to$10.8 million, or 11 cents per share, from $5.7 million, or 6cents/share, a year earlier. Excluding costs related to the pendingmerger with Dominion Resources, Inc., of $7.7 million, or 6cents/share after taxes, income from continuing operations in thethird quarter of 1999 was $16.4 million, or 17 cents per share.

After resisting for nearly two trading sessions the promptcontract finally caved to selling pressure late Tuesday as localtraders liquidated the last of their positions. On that sour notethe October natural gas futures contract completed its tenure asprompt month yesterday by slipping 7.2 cents to $2.56. Estimatedvolume was robust as 122,906 contracts changed hands.

One year after opening its entire Ohio territory to retail gassupplier competition, Columbia Gas of Ohio said nearly 500,000customers, or about one-third of those eligible, are buying gasfrom marketers rather than the utility. Columbia serves 1.3 millioncustomers in the state.

One year after opening its entire Ohio territory to retail gassupplier competition, Columbia Gas of Ohio said nearly 500,000customers, or about one-third of those eligible, are buying gasfrom marketers rather than the utility. Columbia serves 1.3 millioncustomers in the state.