While gas prices remain camped out at record levels, R. SkipHorvath, president of the Natural Gas Supply Association (NGSA),urged state regulators yesterday to be patient until the recordnumber of gas rigs operating can do their work and providedesperately needed supply increases.

“Natural gas producers are doing everything we can to increaseour production and bring more natural gas to market,” Horvath toldthe 112th Annual Meeting of the National Association of RegulatoryUtility Commissioners (NARUC) in San Diego. “We are confident thatnatural gas supply will meet the winter market demand, and that thepipelines and distributors will get the gas to customers.

“We have a record number of rigs drilling new natural gas wells,and today we have more gas in storage than we needed during thecold winter of 1995-1996,” he added. “Although supplies are tight,the market is working.”

Speaking on a panel titled “Are Rough Seas Ahead for Natural GasConsumers,” Horvath urged regulatory restraint. “Governmentintervention in the form of price caps will only harm consumers bycreating the very gas shortage we all seek to avoid.” Patience isneeded, he said, while producers respond to record high prices, “aprocess which can take anywhere from 3 to 18 months.”

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