-----Original Message-----
From:  webmaster@cera.com@ENRON 
[mailto:IMCEANOTES-webmaster+40cera+2Ecom+40ENRON@ENRON.com] 
Sent: Tuesday, January 30, 2001 9:12 PM
To: insights@cera.com
Subject: High Natural Gas Prices Affect US Oil Demand and Supply - CERA Alert


Title: High Natural Gas Prices Affect US Oil Demand and Supply
URL: http://www20.cera.com/eprofile?u=35&m=2234


North America natural gas prices have increased nearly threefold in a year. 
Gas
has lost market share to the heavy end of the barrel, residual fuel, but it
also to middle distillates.

* CERA estimates that the curtailment of gas supplies to interruptable
customers, combined with economically driven switching, accounts for as much
as  0.55 mbd  of the strong year-on-year increase in US oil demand in January.

* For the short term, high gas prices are having a less pronounced effect on
the oil supply side in the United States, about 0.2 mbd.

* This spring about 0.1 mbd of the gains in oil demand due to switching should
be yielded back to gas.

**end**

Follow above URL for full report.

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E-mail Category: Alert
CERA Knowledge Area(s): Global Oil,

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