CRP eliminates unnecessary cost, such as warehousing and handling, by keeping products moving through the supply pipeline instead of storing them in warehouses or distribution centers". The shipments are tracked by a timely, paperless flow of information known as the transaction processing system (TPS) and are delivered on a just-in-time basis. This strategy saves money by lowering inventories and administration cost, while reducing warehouse space.

             The Gas Research Institute (GRI) observed this new trend. GRI's Baseline Projection makes three key observations about trends in energy markets, here are the two that pertain to gas prices: .

             "Gas supply will increasingly rely on higher production from the deeper waters of the Gulf of Mexico and increased Canadian imports. These two sources will become the pillars of supply necessary to meet growing gas demand. However, they will aggressively compete with each other to provide the incremental supply and to meet demand in specific regional markets. The outcome of this competition will depend on the availability of pipeline capacity, the cost to develop the resources, and, ultimately, price competition. .

             Natural gas producers will increasingly implement "just-in-time" development practices that will allow the gas production industry to reduce risk and quickly monetize in-ground natural gas resources. This change in production methods implies lower resource/production (R/P) ratios, which could pose supply reliability issues and increase the risk of price volatility. However, the new approach benefits customers by offering lower average costs.".

             As predicted, the new approach has indeed, created supply reliability issues and price volatility. I had suspected this was the cause all along. In my Information Technology class, I was taught the theory of just-in-time practices. It was predicted that all major companies in any industry, world wide, would turn to these practices because of the development of electronic commerce (e-commerce).