Slightly

On average, U.S. gas production appears to have been up slightly (2%, according to financial reports from 25 producers) at the end of the third quarter compared to 3Q99. However, there was a wide variation among producers, with some reporting huge increases, such as Mitchell Energy, Devon and Coastal, while others reported large declines, including Amerada Hess, Texaco, Kerr McGee and Ocean Energy (see preliminary tally).

On average, U.S. gas production appears to have been up slightly(2%, according to financial reports from 25 producers) at of theend of the third quarter compared to 3Q99. However, there was awide variation among producers, with some reporting huge increases,such as Mitchell Energy, Devon and Coastal, while others reportedlarge declines, including Amerada Hess, Texaco, Kerr McGee andOcean Energy (see preliminary tally below).

Slightly cooler temperatures in many major eastern marketregions dropped cooling demand a few notches yesterday, but alleyes quickly turned to the northwestern Caribbean Sea whereTropical Depression 11 appeared poised for a weekend visit to theGulf of Mexico.

Yukon Pacific Corp. has come up with a “slightly new twist tosupplement” its long-standing project to supply Asian markets withAlaskan liquefied natural gas (LNG), and in fact company executiveswere in Mexico yesterday to sound out officials there about it.

Most of the market “seemed to take a breather” Friday, as oneproducer perceived it, going quietly into the weekend flat tomildly higher. The points experiencing significant declines ofabout a nickel or greater were scattered They included San JuanBasin, Stanfield and Iroquois Zone 2 and were topped by a drop of alittle more than a dime at Malin.

Most of the East was flat to slightly higher Tuesday, although afew points registered gains of more than a nickel. But westernprices softened by as much as a dime despite a continuation ofpower shortages in California.

Cash prices were unable to sustain this week’s earlier upwardmomentum and were turning modestly softer Wednesday. Severalsources expected declines to grow greater today since most of thescreen’s dive of nearly a dime Wednesday followed release of AGA’sstorage report, well after cash trading had been completed.

Both the April swing and May baseload markets were reportedgetting slightly softer Wednesday, mostly because of a small screendownturn and an approaching end of Northeast chill.

Except for a lackluster, slightly lower performance at severalNortheast citygates, the cash market was flexing its muscles like avain pro wrestler Thursday. Price hikes that generally rangedbetween a nickel and a dime dominated the landscape, althoughCalifornia firming was milder except at capacity-constrained Malin.