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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (72235)	9/28/2006 11:21:19 AM
From: Tommaso	Respond to of 206086

>>>end up with stupid hedges that make Morgan Stanely & T.Boone Pickens rich.<<< T. Boone might be a little in the hole just this minute.

To: energyplay who wrote (72235)	9/28/2006 11:36:54 AM
From: onginvester	Respond to of 206086

"I think firms may have to hedge, or be able to shut down and almost go dormant." I agree....but I don't see how that can be a positive for the OSX? If your not going to produce why spend $ to drill?

To: energyplay who wrote (72235)	9/28/2006 2:40:39 PM
From: Spekulatius	Read Replies (1) \| Respond to of 206086

Why can't other E&P's not hedge like CHK? Were they just lucky to close their hedges at the right time? Can we conclude that they will be able to do as well in the future with their heding strategy? CHK's counterparty lost a huge amount of money. I suspect that the demise of Amaranth not only removes a major player in the hedging trade but also will scare others out of this business. One of the consequences may be that the LT future prices come down it will be much more difficult to hedge NG going forward profitably for producers like CHK.