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

To: Claude Cormier who wrote (19647)	3/5/2003 1:38:05 AM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 206092

Claude, I don't think we're running out tomorrow, but when I see things like the Ladyfern depletion and the Deep Panuke out east having trouble because they can't share infrastructure with other projects due to a lack of other finds it gives me pause to think that it will get more difficult going forward. Add to that that many small players have already been taken out or gone trust themselves, AVN alias Search Energy as a conversion or Acclaim with Ketch and Elk Point, Provident with Meota, PWI with Cypress.. and those are just some acquisitions in trusts I own... The trusts may run out of quality small fry to digest long before we run out of gas. Just things to consider. I'm quite comfortable with my trust positions today, but like BAY none of us married it, just partied well :o) FWIW I think NG demand is here to stay so there probably won't be many more firesales either, which is why I lean to gassier trusts. (I notice Ed A. touches on this further down). Here in Toronto we're booming and the heating fuel of choice seems to be overwhelmingly NG. Couple that with the penchant for infill housing, the Mississauga Power plant switching to NG from oil, Pickering reactors still down... we suck up the stuff... so demand is not waning. regards Kastel CCC na mp3 junkie members.rogers.com members.rogers.com members.rogers.com members.rogers.com members.rogers.com members.rogers.com

To: Claude Cormier who wrote (19647)	3/5/2003 7:39:36 AM
From: que seria	Read Replies (2) \| Respond to of 206092

Claude, your question is important to those of us who own lots of gold stocks and E&P companies. For sure it is getting harder to find quality gold deposits in Canada, but is it the same for gas? My sense of this, buying both for the last 20+ years, is: making oil and (mainly) natural gas less attractive: --it's easier to locate the oil and gas than gold; --there's a lot more oil and gas that is readily locatable with present methods than is true of gold, relative to present demand; but... factors making oil and NG more attractive than gold: --oil and gas generally deplete faster than gold is mined, so the treadmill effect is/will be even greater in E&P, assuring ongoing demand (actually cuts both ways, depending upon co's deposits, reserve replacement, finding costs); --oil and gas have far greater inelasticity of demand than gold at present and for the foreseeable future (the key); --revenue realization and payback is far faster with (successful) oil and gas than with gold exploration; --gold exploration offers far greater strikeout risk--competent gold explorers far more often fail to find economic deposits than is true of competent E&P companies; so... Even for a long-time buyer and present holder of gold stocks such as I, North American natural gas looks like a better play than gold. I bet most of your subscribers are already well into energy plays.