• Lower stocks result from operators' interest to improve cost management. Lower stocks reduce costs associated with storage and lessen operators' exposure to price risk.

• Working gas in storage at the beginning of the heating season (November 1) has declined from a high of 3.4 Tcf in 1990 to 2.8 and 2.9 Tcf in 1996 and 1997.

• 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.

• The continued high deliverability from storage has maintained supply security despite the reduced levels of working gas stocks.

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