PPT Slide Lower stocks result from operators' interest to improve cost management.
Lower stocks reduce costs associated with storage and lessen operators' exposure to price risk.
Going into this winter, stock levels for the upcoming heating season are expected to be up significantly from 1997 and adequate given the potential for a large increase in seasonal demand if normal weather conditions develop. As of October 1, stocks are estimated to be about 2.9 Tcf, comparable to the November 1 levels from last year. Net injections typically are around 200 Bcf in October. Thus, there is the likelihood that stocks going into the winter will be comparable to, or exceed, the 1994 levels. Technological improvement in storage facilities has improved performance, allowing smaller stocks to continue deliverability at least as great as previously.