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Enron Mail |
Mark -- Thanks very much for this information.
-----Original Message----- From: Breese, Mark Sent: Monday, May 14, 2001 9:44 AM To: Fairley, David Cc: McMichael, Ed; Weldon, V Charles Subject: Oil Status UPdate -- response to your questions I spoke with Doug Leach regarding your questions. He has already contacted 4-5 suppliers/truckers and is ready to rock and roll when we know what spec. of No. 2 we need. As such, they are all set to supply our requirement. Doug reiterated his interest in looking at the long-term relationship we may want to build with a supplier. He is particularly concerned if the plant switches to oil for a significant amount, supplying large quantities will be a logistical nightmare. He agrees that we can hedge 80-90 (if not 100%) of the commodity risk by buying the Gulf Coast contract (there is no basis traded for FL). However, his market view is for prices to come off (they have already dropped a bit) as a result of gasoline prices cooling off. He has scheduled the test for Vandium today. We should get results in the next several days.
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