forgot to send this last week..
hope you had a good wknd..
ca

-----Original Message----- 
From: Abramo, Caroline 
Sent: Wed 10/3/2001 9:14 AM 
To: Gomez, Julie A.; Lagrasta, Fred 
Cc: 
Subject: FW: Shut In Now and Generate Cash Flow


 
Morning.. this was produced by our marking desk in Houston who deals with small to midsize independent E&Ps who are small and predominately unhedged
 
The idea originated from statements by Mark Pappa at EOG.. that EOG could possibly shut in some production at certain price levels.  It is a response to their intent NOT a suggestion.
 
This is not Enron's TRADING view.. we do not think there will be shut-ins the near term because:
 
The producers are looking to shut in at $1.75 levels.. this would have to occur for several months.. cash is currently at this level but contangos are at all time highs..Nov01 is 42 cents above this level, Dec01 is 83 cents above this level. CY02..$1.05 and CY03 $1.525!!!
 
so.. no one is shutting in now.  as soon as we hear of anyone doing so, we will let you know..
 
So from a trading perspective we still advocate being short Nov, Dec, and 1st 6 months of CY02..
 
Please call me with questions.. I am in Houston this week (713-853-4759) and can set up discussions with John Arnold, Julie Gomez (our fundy specialist) or Jim Schweiger our Texas storage operator.
 
Coming... Rockies/ Canadian shut in thoughts..
 
 
 

 

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