Natural Gas Shortage Contributes to Oil Shortage <------ <-------

Monday January 24, 12:00 pm Eastern Time Company Press Release SOURCE: HEAT USA HEAT USA Issues Crisis Alert to Heating Oil Consumers Fuel-buying cooperative creates toll-free information hotline 1-800-660-4328 to mobilize consumers faced with severe shortages and record-breaking prices for home heating oil NEW YORK, Jan. 24 /PRNewswire/

The sudden depletion of oil inventories in the Northeast was precipitated by the natural gas utilities forcing their commercial 'interruptible' customers to switch fuels from natural gas to heating oil because of shortages in natural gas. The utilities also switched many electricity generating plants from gas to oil. This is standard practice whenever the utilities are unable to meet the demand for natural gas, which typically occurs when temperatures drop below 20 degrees. .................

I clipped this from a post on TB, I believe, but when I clipped it I had no idea it had information about the natural gas industry and its role in the oil shortage. It's obvious that this is being kept extremely quiet, but the gas shortage has diverted some oil and is actually one of the reasons our JIT oil reserve shit the bed.

From my lonely, non-oil-professional perspective it looks like we have the following factors converging simultaneously:

1. JIT reserves were very low.

2. OPEC ceiling is in effect (for two years.)

3. Y2k - largely unknown impact.

4. Natural gas shortage diverting oil to certain customers.

5. A preponderance of explosions, both natural gas and oil related at refineries and pipelines.

Meanwhile OPEC has firmly stated that they see no shortages and the prices are mostly aligned with the true value of the product.

Something is not squaring up properly with this picture. It looks like we let our reserves run down. Why? It looks like OPEC says there is no world shortage. Why? It looks like there are more than the normal production/delivery problems. Again, we have to know why this is happening. Something just isn't right. The prices tell all. In the NE we are seeing diesel approach 2 dollars when last year it was below a dollar. That is a 100% markup folks.

-- paul leblanc (bronyaur@gis.net), January 25, 2000

Answers

I wonder if the natural gas shortage would be severe enough to effect metropolitan areas. Have they ever rationed natural gas to homeowners? Don't think FEMA or the Red Cross could find enough shelters for New Yorkers, Deroiter, etc. Major migration south!

-- Trish (adler2@webtv.net), January 25, 2000.

The interesting thing is that they are blaming a natural gas shortage as a contributing factor. It seems to me that someone should be asking "Why is there a natural gas shortage?"

-- Space Coaster (lee@brevard.net), January 25, 2000.