Quaker

Eye On Pengrowth Energy Trust

Well, there's certainly more liquidity on NYSE but I get your point. I bought Canadian Oilsands and Viking in 2003. At the time Viking was pre Harvest.

I do like canada, though. They have a balanced budget and a conservative government. (for investors, conservative governments pay their bills) I also like canada because they're not Saudi Arabia.

I worked Ghawar as an engineer for 8 years in the 80's. I can assure you, 99.9999% of the saudi managers have zero idea what they're fields are doing. All anecdotal evidence points to rapidly declining production.

I could post for hours on Ghawar, safaniyah inland and offshore. The ghawar flood front advance never worked correctly. The field is only contigouos at the top, in the dolomites. The rest is a permeability nightmare.

I think most of the volitility in oil is from the same sourse as volitility in housing and stocks. Too much money chasing too few investments. but of course, time could prove us all fools.

Eye On Pengrowth Energy Trust

What? A royalty is a tax on gross sales, an income tax is a tax on net profit. 31% of 20% (their distribution, which will be taxable) is 6%.

Eye On Pengrowth Energy Trust

There are three trusts I rather like. PGH, HTE and True Energy. Oil and Gas are relative commodities. Just as Canada announced a new tax, so did the USA. I contend that Canada's 31% tax is far less than the US "one barrell in eight."

HTE has a refinery in Newfoundland. Newfieland could be the next Beaumont. Canada has traditionally been desperate for development there.

Also, if you brush aside the pundits, now could be the bext time to buy energy. This price correction is futures related. You have to remember, opec went to a futures pricing system from the old one based on Omani spot. This made the futures market far more significant.

But the industry hasn't changed. If Saudi Arabia is so awash in crude, why are they ordering jackups? Also, if all this ballyhoo'd new production is coming from Harad, why do they have a dozen jackups drilling Safaniyah offshore? (light sweet)

It would be obvious to Forest Gump that Russia, Mexico and Venezuala aren't investing in their own fields. Eastern Siberia is a fantasy. Russia is overproducing and stuffing the money in the Camen Islands. This you can see in the treasury auction. Soon Russian production will fall.

Pemex is an overindebted, banana republic basket case. Their own ex CEO says they could be out ofthe export business in 5 years.

The point is, a huge percentage of world production is in aging fields controlled by socialist governments or inept Monarchies that are more interested in drilling for money than drilling for oil. Canada may be liberal, but they're not socialist.... yet.