Wellhead Prices Drop; Electric Growth Slows

Fortnightly Magazine - June 15 1996
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EEI Annual Meeting 2024 - June 18-20

The Energy Information Administration has released its second-quarter Short-Term Energy Outlook projections. Some of its predictions for gas and electric markets:

s Normal temperatures and continued economic growth will raise total annual gas demand in 1996 to a high of 21.9 trillion cubic feet. In 1997, demand is expected to rise 2.7 percent, to 22.5 trillion cubic feet.

s In 1997, the average wellhead price should decline by 15 cents per thousand cubic feet as normal winter weather, continued market efficiencies, increased domestic production, and growing Canadian imports offset rising demand.

s Annual average residential electricity prices should remain nearly flat through 1997 due to moderate costs for labor, capital, and fossil fuels.

s Growth in electricity demand will continue to boost coal demand (em by 0.8 percent in 1996, and 1.7 percent in 1997.

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