Devon CEO Sees Risk of Oil Price Spikes

The balance of supply and demand in the world’s oil markets is “exceedingly tight”, and any disruption could send prices higher, Devon Energy Corp. (DVN) Chief Executive Larry Nichols said Wednesday

“There is very little surplus capacity anywhere in the world,” said Nichols in a telephone interview. “Whenever there’s any problem with a source of supply, that’s going to cause prices to go up.”

Devon, the largest U.S. oil and gas independent, doesn’t have any plans to hedge its crude oil output in 2006 and beyond, Nichols said.

Schlumberger