Natural Gas Supply Still Not Sufficient

Several factors have contributed to a reduction in demand for natural gas in California in the past month [“State Enjoys a Reprieve as Natural Gas Prices Drop,” July 1].

First, there is more electricity available from non-gas-fired electric generation, such as nuclear and hydroelectric facilities. This has decreased the need for fuel for gas-fired plants.

Second, energy conservation efforts statewide have caused an overall decrease in the demand for power, resulting in a decrease in demand for natural gas.

Third, natural gas storage facilities across the country are refilling at a rapid pace, which has had a downward impact on natural gas prices.

We are pleased that California, along with the rest of the country, has received some recent price relief. However, the gap between supply and demand has narrowed but not closed. California gas prices have gone down but remain higher today than in the rest of the country.

This discrepancy demonstrates that supply is still not sufficient to satisfy even the reduced demand, disproving the claims of manipulation.

Norma F. Dunn

Senior vice president

El Paso Corp.

Houston