DEP Press Advisory on Deer Hunting Cancellation, October 2, 2001

NYC 9/11 Public Portal Document

Expect a mild season for energy markets ■ Natural gas is 57 For a while, natural gas compa­ The driving force behind these nies raked-in huge profits as they savings is cheap crude, which percent less cranked up production. But their traded at $23.28 a barrel yesterday aggressive drilling eventually on the New York Mercantile Ex­ expensive than smacked up against a sharp drop change, compared with $33 a year a year ago in demand as the U.S. economy ago. faltered. Supplies were replen­ “Most people think that crude is ished and prices began to flatten. going to flirt with $20 a barrel be­ By BRAD FOSS fore it flirts with $30 again,” said ASSOCIATED PRESS The decline in natural gas prices was compounded by the Tom Kloza, director of Oil Price fact that many industrial users Information Service in Lakewood, As the mercury falls, energy switched to less expensive distill­ N.J. prices are moving in the same di­ ate fuels, sapping nearly 5 percent Heating oil for November deliv- rection and analysts say consum­ from daily natural gas demand. erj’ ended yesterday at about 66 ers should expect significant sav­ cents a gallon, about 20 cents ings on home heating bills this The impact has been dramatic. below year-ago levels. winter. Injections of natural gas into un­ derground storage facilities have Homeowners will experience Because of weak demand from been robust since late spring and even more savings, analysts said. industrial users and a glut in sup­ are likely to continue through if demand remains weak for jet ply, natural gas is 57 percent less fuel, which is similar to heating oil expensive than a year ago. Crude early November, said Paul Wil­ kinson, an economist at the Amer­ from a production standpoint. oil, from which heating oil is re­ fined, is about 30 percent cheaper ican Gas Association in Washing­ Airlines have already trimmed per barrel compared with last ton. capacity by 20 percent nationwide year._____________________ The country had 2.84 trillion and, if the trend holds, refiners might-tweak their production to With no quick turnaround in cubic feel of natural gas in stor- make more heating oil, which sight for the U.S, economy, ex­ age for the week ended Sept. 21, could further dampen prices. perts believe the downward pres­ compared with 2.40 trillion cubic- feet during the same period in Refiners could disturb what is. sure on energy prices could per­ for now, shaping up to be a mild sist through December, 2000. The wholesale price is now slightly above $2.15 per 1,000 cubic season for energy markets if they “Natural gas prices are a frac­ feet, compared with $5 per 1,000 significantly cut back production, tion of what they were last year cubic feet at the beginning of last said Peter Beutel, publisher of the and, on average, consumers year’s home heating season. Cameron Hanover Energy Hedger should expect tremendous sav­ in New Canaan, Conn. ings,” said Fadel Gheit, an energy Electricity could also be analyst at Fahnestock & Co. in cheaper, as more than 15 percent New York. of the nation’s power is derived from natural gas. The Energy Information Ad­ ministration, the Energy Depart­ About 51 percent of all homes in ment’s statistical arm, releases its the United States are heated with outlook for winter fuels on Thurs­ natural gas, according to the AGA. day. Mary Hutzler, the agency’s Thirty-tv; f percent use electricity. acting administrator, said the gov­ 9 percent rely on heating oil and ernment’s forecast “jibes” with the remainder use wood, alterna­ what industry analysts are pre­ tive fuels or have no heat at all. dicting, but she would not provide details. When it comes to heating oil, which is primarily used in the Last winter, Americans paid Northeast, analysis say homeown­ throueh the roof to heat their ers could save an average of 30 homes as natural gas supplies cents a gallon compared with last were extremely tight and demand year’s prices. For example, a from industrial users was strong. household using 600 gallons of The wholesale price, which traded heating oil during the October- around $2.50 per 1,000 cubic feet in the late 1990s, soared above $10 in January. March season could save $180. PQOflOfa o-^-Oi NYC-WTC_000152500