Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.energy,americast.usa-today.energy From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: energy Mon, Sep 28 1992 Date: Mon, 28 Sep 92 04:52:55 EDT Message-ID: 09-28 0000 DECISIONLINE: Energy USA TODAY Update Sept. 28, 1992 Source: USA TODAY:Gannett National Information Network CONSUMERS SHOULD SURVIVE HIKES: Natural gas futures prices have jumped almost 50% since Hurricane Andrew ravaged gas wells in the Gulf of Mexico. But experts say consumers shouldn't get burned too badly. Prices of natural gas contracts for future delivery, traded on the New York Mercantile Exchange, jumped 48% after Hurricane Andrew damaged offshore pipelines and production platforms in the Gulf of Mexico. (For more, see special Gas package below.) OIL IS DOWN IN LIGHT ACTION: Oil prices fell slightly Friday in thin trading. Light sweet crude oil for delivery in November settled at $21.68 cents per barrel, down 11 cents. There was little news of substance that affected the market, traders said. Crude was 30 cents lower for the week as discord in the Organization of Petroleum Exporting Countries increased expectations of higher supply in world markets. NATURAL GAS UP; REFINED DROPS: Natural gas prices increased slightly after a hectic week on the New York Mercantile Exchange. Natural gas for November delivery rose 1 cent per 1,000 cubic feet Friday to finish at $2.474. Unleaded gasoline for delivery in October settled at 58.80 cents a gallon, down .07 cent. Home heating oil for delivery in October settled at 62.79 cents a gallon, down .47 cent. GAS MILEAGE NOT A TOP CONCERN: The Environmental Protection Agency Monday releases MPG figures for the 1993 model year - to a rousing chorus of yawns. The message from car dealers and industry experts is that consumers care far less about that than they used to. It's only the No. 6 factor consumers consider when shopping for a car. Fuel economy became an obsession when gas shortages sparked price hikes in the 1970s. GAS IS CHEAP; ENGINES IMPROVE: The reason America's quest for super-high-mileage vehicles is part economic and part technological. Gasoline is cheap, averaging $1.16 per gallon. That's less than some brands of bottled water and cheaper than 1947 prices, accounting for inflation. Engines in general are much more fuel-efficient, meaning not just tiny cars get good mileage. And buyers now look for safety and value. SPIRE TO SELL TESTING SERVICES: Spire Corp. Friday announced an agreement in principle to sell its commercial gas testing services and its silicon wafer manufacturing assets to M:A-Com Inc., which manufactures defense and commercial telecommunications components. Terms of the sale, which will be finalized next month, were not disclosed. Spire said the sale would mean an earnings charge, but did not elaborate. ALYESKA WON'T CONTROL BENZENE: Alyeska Pipeline Service Co. in Valdez, Alaska, says it has no immediate plans to spend up to $200 million to install a benzene-control system at its crude oil terminal. A watchdog panel says the cancer-causing chemical poses a threat to the area's 4,000 citizens. An estimated 450 tons of benzene a year escapes into the air during loading of oil, officials say. SPECULATORS SELL ON RUMORS: International oil prices fell Friday. Speculators sold oil futures, reacting to vague reports that the United Nations might seize Iraqi assets to pay for the cost of humanitarian aid to the country this winter, traders in London said. The Associated Press Friday reported that the U.N. is discussing a draft resolution, according to Bloomberg Business News. NATURAL GAS LEAK STOPPED: Workers in New Orleans have stopped the flow of natural gas from two pipelines that were severed last week when a barge broke away from a tow-line, according to Coast Guard officials. Most of an oily condensate that formed a light sheen on the water has dissipated. COAL COMPANY TO APOLOGIZE: Great Western Coal Inc., in London, Ky., says it will apologize in newspaper and broadcast ads for spilling millions of gallons of contaminated water into a Cumberland River tributary in '91, according to a U.S. attorney. The move is part of a plea agreement for violating the federal Clean Water Act. SPECIAL PACKAGE ON GAS: PRICES WILL REMAIN VOLATILE: Traders expect natural gas futures prices to remain volatile the next few weeks, but consumers who use natural gas to heat - 60% of homes nationwide - should see only modest price increases this winter, industry experts say. The most pessimistic forecast puts price hikes at 10% to 15% over last year for consumers, says Peter Beutel, energy director at Pegasus Econometric Group in New Jersey. ANDREW HAD MINOR EFFECT: Most experts expect a much smaller rise than pessimistic guesses of 10%. Last year, prices rose 6%. Consumer prices are expected to be stable because less than 5% of the nation's gas production was affected by Hurricane Andrew. Also: It takes months for utilities that supply natural gas to consumers to get regulatory approval to raise rates. Futures prices should fall fairly soon. SUPPLY REMAINS PLENTIFUL: Another reason not to despair is that gas is plentiful. In January, when demand peaks, 2.5 trillion cubic feet of gas will be available this year, AGA President Michael Baly III predicted last week. That's 6% more than the record 2.4 trillion cubic feet used in January 1979. So while consumers can breathe a little easier, gas futures traders are bracing for more crazy trading days. (End of package.) Energy Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes violates federal law. This article is copyright 1992 Gannett News Service. 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