NOWHEREMAN

Energy Trusts at Risk of Distribution Cuts - Scotia Capital Analyst

NG is the principle way Tar oil is extracted and converted to heavy oil, steam extraction and conversion as proposed by PGH is as yet untested commercially. Suggest looking at the big Kahunas in this area like Suncor to see the process.

At least, this is the way Canadian operations work. But then I could be way behind the curve here since I haven't followed the extraction process for a few years. Especially since I've never associated mining tar with drilling for oil. There just aren't enough refineries capable of processing tar so NG is used as the energy source to make it fluid enough to ship via pipeline. There is more to it than this but I know enough about it to know that NG shipments to the US will have to be curtailed to increase Canadian production. Large amounts of Greenhouse Gases are released and Canada has been forced to consider building Nuclear Reactors to reduce the amounts released as part of their Kyoto commitments.

BTW, the US has large quantities of the same sort of substances. Ever hear of the Black Sands? Look under Tar in the Wikipedia, lots of major environmental concerns with vitually none of them being addressed. Toxic air, water and land are byproducts of most of the processes currently underway.

You might as well use coal since toxic air is the primary concern with it.

IMHO

Energy Trusts at Risk of Distribution Cuts - Scotia Capital Analyst

All oil companies paying relatively high yields are at risk of reducing their payouts. What else is new?

The Canadians are less at risk than others because of the big drop in the Loonie. It is much easier for a company like HTE to service its debt now that they have a positive cash flow from oil/oil products sold for dollars vs losing money when the loonie was at parity or higher.

HTE for all of its "scary" debt is the only one of the others mentioned above which has announced the open market buyback of both units and debt. Of course, I may be mistaken since I do not follow all of them.

This Kaliel that you quote, what sort of track record does he have? How have his recommendations panned out?

You neglected to mention his history so I do not have a clue whether to follow his advice or not. It would be nice to have this sort of info about all of the analysts whose articles you post excerpts from.

Ditto Adams, who at least has a caveat: ... "should commodity prices remain at or below current levels."

They also forgot to include PGH, which is building a Pilot plant which will use steam rather than NG to extract oil. This will mean a lot to them if it works since they are leveraged to NG.

Just an opinion from an unqualified former stockbroker who is used to Brokerage Hype.