info higher gas prices enron talking points factors leading higher natural gas prices winter demand natural gas increased mainly due consumption power generation market strength manufacturing sector booming economy natural gas production drilling fallen since 1998 due low prices reached far 2 per mmbtu 2000 deliverability utilization 95 percent drilling activity risen sharply much 50 last year production increased drilling activity typically available several months according aga supply production continues run 16 last year levels past three winters warmer normal winters midwest much united states canada artificially masking usual consumption natural gas normal weather situations warm weather summer caused significant demand increase natural gas electricity generation sector thereby competing gas storage injections marketplace driving prices upward u storage inventory levels lower historical average levels past six years according aga cost storage inventory summer strong prices could eliminate price advantage traditionally experienced winter heating fuels like propane heating oil also showing significantly higher prices potentially lower stocks winter last