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

To: CommanderCricket who wrote (156995)	9/14/2011 12:28:38 PM
From: teevee	3 Recommendations Read Replies (1) \| Respond to of 206093

Would you rather hold $USD or reserves in the ground with a dividend? In the context of our discussion, I would rather hold both, as it still takes "coin of the realm" to take advantage of ongoing and future investment opportunities. For me personally, in the energy sector, I focus on management teams with a lot of their own skin in the game, and with a track record of growing reserves and production from startups to becoming intermediate producers with more than 20,000 boe/d production. This strategy allows me to average up over time if and as management teams deliver on accretive growth. Yes, this is a high risk, focused strategy that most investors don't have the skill set to implement or be comfortable with, so to each their own. Getting back to "sandbox" companies, I have no doubt their management is as good as possible, however, from my "30,000" foot perspective, these companies are boxed in with no where to go but down. Considering the existing level of US ownership in "sandbox' companies, it is unlikely they would favour a vision that encompassed adding value in Canada by building refining capacity, and building refined and crude pipelines and terminal capacity on Canada's west coast, targeting the Pacific Rim market, as this would only compete with US operations and provide investment, jobs and tax revenues outside of the USA. For example, if the Gateway pipeline to the west coast is built, interested parties have already indicated they would only be shipping "sandbox" crude to California refineries, and I doubt this would provide positive price support to existing and growing price differentials. Some of Canada's refining capacity, especially in central Canada, only exists because it is mandated by Canadian policy and law. Without it, 100% of refined product would be imported from the US and abroad. In my opinion, the only way "sandbox" companies can grow is by adding value by refining and exporting to an expanded market, and this will only happen if it is mandated by the Canadian Government. We can all rest assured that this will never happen under a Conservative Harper Gov't which will be around for at least another 10 years, so I will be staying away from "sandbox" companies.