XTO Energy (XTO)

[MrBankRoll]

Dry New Year in California Could Boost Natural Gas

If long-range weather forecasts hold up, California could have another drier-than-normal year in 2008. Citi Investment Research analyst Gil Yang says that could mean less hydroelectric power generation and more demand for natural gas to fuel power plants.

"Early readings for the summer of 2008 suggest that snowpack in California is running at just about 60 percent of normal for this time of year - about in line for this time last year," Yang said in a note to investors.

The analyst said an additional 122 billion cubic feet of natural gas was consumed in California in 2007 compared with 2006. The state had one of the driest summers on record this year.

Yang thinks Southwestern Energy, Quicksilver Resources, EOG Resources , Chesapeake Energy and XTO Energy stand to benefit from higher natural gas demand this year.

http://money.aol.com/news/articles/_a/energy-sector-roundup-oil-drifts-lower/n20071231164409990013