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Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge? (Part 2)

It's been stated before that gas wells deplete more rapidly than an oil well; thus gas production requires the utmost in efficient drilling and gathering, assuming reserves are well assured. Thus gas dependents need close to a 'production line' mentality with repeatable techniques and crews that can excell. When a gas dependent is running close to the wind and falling prices guts their margins then they run the risk of reducing crews and losing expertise in the mundane but vital.

Canadian Royalty Trusts Will Never Return to Their Former Glory

"You've already pointed out that the trusts mostly add production via acquisition. Has it never occurred to you that it might be better to acquire properties when the price of oil/gas is at a low, rather than an all time high as it was over the time you're condemning them for not replacing production. I think you're much more likely to see acquisitions this year than last..."

They would, if they could. That was one of the points in the article. 3 sources for purchase: diverted distributions, debt or equity. None all that attractive or available.