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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Condor who wrote (10472)	9/24/2006 3:46:12 AM
From: energyplay	Read Replies (1) \| Respond to of 11633

Hi Condor - On the NG to oil equivalence - ask Quehubo on the Boom Boom thread about that, since there are pollution credits and sometimes lower maintence for using NG instead of oil, NG is worth more than the strict BTU equivalent. Quehubo knows what those numbers are, and the switching back in forth happens around those modified numbers. You are right about low NG prices helping heavy crude, both as a source of heat for physical processing and adding hydrogen to get higher gasoline and diesel yields, since heavy crude doesn't have enough hydrogen for each carbon when made into gasoline. Also, in the winter, butane is added to many gasoline mixtures, and has a distinctive odor I don't get from summer gasoline. Really helps cold starting. So we could see the oil sands profit hold up even with the lower oil prices, because of lower NG. Of course, we would also need to review the hedging they have done...;-)