Vastar Resources would appear to be taking a wait-and-see viewof next year’s gas prices. CEO Chuck Davidson told Houston energyreporters Tuesday that “not much” of the company’s gas productionis hedged next year. Indeed, Vastar generally doesn’t hedge morethan a year out and hedges less than 50% of its production.Davidson said the company also is using more collars rather thanhedges linked to a specific price.
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Deregulation, Technology Push Gas Demand
In the view of Enron CEO Kenneth L. Lay, deregulation andtechnological advances will be a boon to consumers and also naturalgas. As completion creates greater incentives for boostingefficiency, particularly with regard to power regulation, naturalgas stands to benefit. Lay pointed out combined-cycle generation,especially that fired by natural gas, accounts for 60% of total newinstalled generation capacity in the United States since 1991.
September 16, 1998