Natural Gas Prices Cripple Cotton Gin Industry

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Natural Gas Prices Cripple Industry -

The highest natural gas prices on record have hit the cotton ginning industry head on. On December 6, the price for natural gas at the Southern California Border hit $39.75 per MMBtu, and was showing no signs of slowing down with the impending freeze. By December 12, prices were in the $60 range for natural gas in California. This is up from $5.96 per MMBtu on October 2 and up from $2.45 per MMBtu one year ago! In 1997 the average cost for drier fuel in California gins was approximately 73¢/bale. Under current prices, the cost would exceed $15 per bale. These prices have industries throughout California staggering to find possible solutions to rectify this huge problem, including the use of propane as a possible alternative. Affected industries include fertilizer plants, wineries, glass plants, food processors, milk driers and others that rely on natural gas as a primary source of fuel. A winery, flower nursery, and a paper mill have already shutdown due to the high cost of natural gas. While the usual suspects of tight supplies, increased demand, and limited storage have raised their heads, none can account for the outright pillage of the affected industries. The Association has contacted everyone from the Governor of California to the California Congressional Delegation to plead the impact of this tragedy.

http://www.ccgga.org/latest%20news/latest_news.htm

-- Martin Thompson (mthom1927@aol.com), December 25, 2000

Answers

If this was a 5.5 earthquake with no deaths it would be all over the front page of every newspaper in the land. This is far more devastating to California's local economy than an earthquake would ever be and yet the quantity of news is virtually nonexistent. Why is that?

-- Guy Daley (guydaley@altavista.com), December 26, 2000.

This article was found in a cotton gin trade paper. I doubt if it was ever published in any newspaper.

-- Martin Thompson (mthom1927@aol.com), December 26, 2000.

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