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There is a growing consensus among market observers that working gas levels in storage could fall sharply this winter possibly to near historic lows by April, but several veteran industry analysts warn against crying “the sky is falling” too soon. They say the current amount of working gas in storage appears adequate to handle this winter’s demand, particularly when compared to average storage levels in the mid-1990s.

The chairman of the gas demand task force of the NationalPetroleum Council (NPC) said last week his projections of a 30 Tcfmarket by 2010 in the December NPC study on natural gas “might havegrossly underestimated inherent demand.” The growth of gas firedpower generation has caught everyone by surprise and could have theunexpected effect of causing net gas withdrawals from storageduring the summertime as early as next year, said Matthew R.Simmons, president of Simmons & Company International.

The chairman of the gas demand task force of the NationalPetroleum Council (NPC) said yesterday his projections of a 30 Tcfmarket by 2010 in the December NPC study on natural gas “might havegrossly underestimated inherent demand.” The growth of gas firedpower generation has caught everyone by surprise and could have theunexpected effect of causing net gas withdrawals from storageduring the summertime as early as next year, said Matthew R.Simmons, president of Simmons & Company International.

President Clinton’s decision yesterday ordering the Departmentof Energy to trade crude oil from the Strategic Petroleum Reservefor two million barrels of heating oil stored in the Northeast asprotection against fuel shortages this winter may not be enough tocalm down Sen. Charles E. Schumer (D-NY).

While FERC’s ability to monitor the electric power market has faltered, a report by a Commission task force has found that the level of price spikes for wholesale power has grown progressively higher over the past couple of summers, with the biggest increases being seen in the eastern half of the nation.

While FERC’s ability to monitor the electric power market hasfaltered, a report by a Commission task force has found that thelevel of the price spikes for wholesale power has grownprogressively worse over the past couple of summers, with thebiggest increases being seen in the eastern half of the nation.

After a week of offers, acceptances and counter-offers, Southern Union and Oneok are now waiting to see who is awarded the prize of merging with Southwest Gas. Both companies said they have reached the maximum they can offer. The only winners so far, according to a source close to the situation, have been Southwest Gas’ shareholders, who have seen the price for their shares vault from an original $28.50/share to $33.50/share.