Gas Demand Conclusions
“Death” of industrial demand is probably exaggerated.
Power and storage will provide strong demand, helping offset possible economic weakness in 2001.
Simply assessing storage data either overstates supply response or demand destruction
- Supply temporarily augmented by dramatic decrease in NGL extraction
- Residential consumption difficult to assess now
Mixed signals for industrial demand
- Surveys of consumers shows much less reduction
- Some demand returning
Gas-fired power capacity additions may set record in 2001
- Precise timing will determine 2001 demand
Storage refill will be a major component of 2001 demand
Economic outlook - principal driver for 2001 gas outlook
GAS PRICES LIKELY TO REMAIN WELL ABOVE HISTORICAL LEVELS