Static

Prices dwindled at virtually all points Friday as cooling load remained largely static or dropped in such key market areas as the Northeast. The previous day’s decline of 3 cents by September futures was an additional, but minor, bearish influence on the cash market.

Southern heat levels were expected to remain static or rise slightly in some sections into the low to mid 90s Thursday, but otherwise, except the desert Southwest and the Denver area of the Rockies, few other locations were expected to get above the 80s. Thus cash prices had to rely primarily on a prior-day increase of 6.3 cents by August futures, and possibly expectations of a moderately bullish storage report Thursday, in ranging from flat to nearly 15 cents higher at a majority of points.

Inadequate reserve replacement last year should set off an alarmin the gas industry given continuing increases in gas demand,according to a new report by Arthur Andersen and John S. HeroldInc. Proved domestic gas reserves were essentially unchanged in1997 despite a 24% increase in extensions and discoveries to 10.1Tcf, the highest level of drillbit gas reserve additions in thefive-year study period, according to the study titled U.S. UpstreamPerformance Trends. The study noted, however, that negative reserverevisions of 1 Tcf, including a 623 Bcf downward revision by EEXCorp. and smaller downward revisions by Amoco, Mobil and PioneerNatural Resources, are included in the figures.