UNDER SINK WATER HEATER

Under Sink Water Heater

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High Oil Prices – Some large-volume customers (primarily industrial consumers and electricity generators) can switch between natural gas and other fuels, such as petroleum products, depending on the prices of each. As a result of this interrelation between fuel markets, when oil prices rise, the competitive pressure to maintain low gas prices diminishes, and the shift in demand to natural gas drives prices upward. Crude oil prices have increased to as much as $69.91 per barrel in trading during August 2005

Adequate inventories – Underground storage facilities, as of October 4, 2005, held working gas stocks of 3,062 billion cubic feet (Bcf), 53 Bcf above the 5-year average of 3,009 Bcf. This left natural gas inventory levels in early October 2005 at 1.8 percent above the 5-year average level. However, the natural gas inventories in underground storage facilities are about 5 percent lower than last year at this time. The natural gas inventories are expected to track above normal levels through the rest of 2005 as long as weather conditions remain close to normal. Although storage levels are above recent historical norms, the relatively low injections during most of the summer have raised concerns about storage availability in the coming heating season

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