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NEWS - Natural Gas Spot Prices are Expected to increase 13% in 2004 over 2003 Levels.

No doubt, higher Natural Gas Prices will be with us for the foreseeable future. There may continue to be volatility in the spot price but, over the long-term, we can expect to pay more for energy. Natural Gas Consumption will increase by about 1.5% do to increased economic activity. Higher Oil prices will discourage users from switching to oil. Electrical Power Generation’s use of natural gas will further support higher consumption rates. There is an effort to bring new supplies of Natural Gas to market. There have been about 20,000 new wells completed in 2003 and we can expect even more wells to be completed in the next years, but declining production from existing wells has and will largely offset the contribution from these new wells. Production in 2004 is expected to increase less than 1%. We can expect natural gas spot prices to exceed $ 6.20 for 2004 and remain above $ 6.00 for the foreseeable future. The following graphs illustrate historic and projecteded trends in Natural Gas Prices, Supply and Consumption.

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PDF Version of the Above Chart

PDF Version of the Above Chart

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