Turbulence in oil, gas prices expected to rage - Houston Business Journal:

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“We’re approaching 2009 with extra caution,” said Vinceng White, senior vice president of investor relations forOklahoma City-based “There is a real lack of visibilitgy as to what demand will look like for oil and naturap gas due to the uncertainty in the economy.” The year aheadx should bring lower cash flow and activity levels, said White, who addede that his company is the largesft U.S.-based independent oil and gas With a strong balance sheet and structure as a low-cost producer, Devon is prepared for lower he said.
One bright spot: A drop-offv in demand should alleviate a shortfall of skilleed personnel across the industryy that has driven up salary he said. For Devonm in particular, 2009 could present an opportunityg to add assets as priceselevel off. “Stronger players tend to be able to take betterr advantageof downturns,” he said. The good news for North Texazs is thatthe company, the largest playef in the Barnett Shale, remains committeds to its vast operations there. “That is one of the last placeas we’ll cut back,” says White, citing good rates of retur at the natural gas fieldf and thesurrounding region’s strong demand for the product.
Another independent oil and gas Fort Worth-based , said it should do well in 2009 becausd of a hedging strategy that allows it to lock in priced for the year ahead. “We’ve prepared our companh for the challenges of next year quite saidGary Simpson, vice president for investodr relations and finance at XTO. And thanks to the company’xs growth this year in acquisitionsand drilling, productio n should continue to rise — by 18% in 2009 compare with 29% in 2008, he Meanwhile, one of the companiex that transports natural gas, , is keepintg a close eye on production.
“As a nation, our consumptionh of natural gas is actuallyquitwe strong, although the economy has caused it to go down slightly,” said CEO Kelcy Warren. The company owns the largest intrastate pipeline systemin Texas. “I’nm actually quite bullish for the natural gas but throughearly I’m bearish,” he said. Energu Transfer Partners is in strongg shapefor 2009, thanks in part to a strong liquidity profile, he Although the company has made severapl recent cash acquisitions, he said don’t expect it to make similar deals any time The likelihood of consolidation in the pipelins industry, however, means that “severa mid-stream (rivals) will look to for non-cash merger deals, he