The New York Mercantile Exchange contract for January delivery at one point dropped to a new 52-week low of $4.432 per 1,000 cubic feet on Thursday.

Prices on the spot market, for buyers who need gas right away, also fell. At the Henry Hub in Louisiana, spot gas was selling for $4.55 per thousand cubic feet Thursday, down 13 cents from Wednesday. A year ago, the price exceeded $6.50.

The government reported that the amount of natural gas in storage increased again, surprising most energy experts. The country has never had this much natural gas in storage, records indicate.

"We need to have a winter," said Steve Malcolm, the chairman, president and CEO of the Tulsa energy giant Williams Cos. Inc. "There hasn't been much cold weather so far."

Malcolm made his comment at the Tulsa Metro Chamber's annual economic outlook conference at the Doubletree Hotel at Warren Place. The price of natural gas was a hot topic at the event, because many Oklahoma energy firms depend on a strong market for the fuel.

Typically in December, natural gas supplies are getting smaller as people turn on the heat in their homes.

That's not happening this year because the winter has been so mild. Instead, more gas was placed into storage last week, the first time that has happened this late in the year since at least 2001.

The salt caverns and other places where the U.S. stores natural gas are near or at capacity because major industrial power users have been shuttering plants or slowing production. The Energy Information Administration said Thursday that natural gas stocks have set new national records for seven consecutive weeks.

For consumers, that likely means an extended period of cheap energy, though how long that will go on is not clear. But heating bills will be cheaper in most places and power companies that use natural gas also will feel less pressure to raise electricity rates.

Still, Malcolm pointed out that three of the nation's largest independent natural gas producers are located in Oklahoma. Along with Williams, the other two are Chesapeake Energy Corp. and Devon Energy Corp.

In 2008, when gas was selling for $9 per thousand cubic feet, Williams had an exploration and production budget of $2.3 billion. This year, however, with gas closer to $4, Williams had to cut its E&P spending to $1 billion.

Malcolm said that natural gas is the best alternative for reducing greenhouse gas emissions and is a good choice for fleet vehicles.

Oklahoma energy companies, he said, are working hard to promote the fuel.

Malcolm is a little more optimistic than some national analysts. His company forecasts that Henry Hub gas could rise to $5 to $6 per thousand cubic feet in 2010. The spot price fell as low as $1.88 this year, according to Bloomberg data.

Nationally, oil prices also fell Thursday.

Benchmark crude for January delivery gave up 14 cents to settle at $76.46 a barrel on Nymex.

In London, Brent crude for January delivery rose 48 cents to settle at $78.36 a barrel.

Oil imports have sunk to the lowest point since the fourth quarter of 1990, when the U.S. was preparing for the first Gulf War, according to analyst Stephen Schork.

The Tulsa World Business staff contributed to this story by The Associated Press. SUBHEAD: The CEO of Williams Cos. remains optimistic about the fuel's future.

Originally published by Associated Press.

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