Pondered

When economists at the Energy Information Administration (EIA) early this year pondered what might put a floor under falling natural gas prices, their first thought was supply curtailments. But attention soon turned to the demand side and the growing economic advantage of gas-fired generation relative to coal-fired plants.

When economists at the Energy Information Administration (EIA) early this year pondered what might put a floor under falling natural gas prices, their first thought was supply curtailments. But attention soon turned to the demand side and the growing economic advantage of gas-fired generation relative to coal-fired plants.

While gas traders, especially those who deal with western points, pondered the ramifications of the PG&E bankruptcy filing (see related story), most of the cash market saw moderate firmness Friday. A large majority of the upticks were in the vicinity of a dime, although scattered points rose as much as about 15 cents and others were up only about a nickel. There were small declines in the Rockies and substantially larger ones in California.