Cramer's Mad Money (CNBC) Talks "Unconventional Carbons" with the Head of EnCana
Posted by Prof. Goose on August 23, 2005 - 3:58pm
6:50 EDT: Cramer leads with skepticism citing the Maass piece with a little contempt. Head of EnCana says "yeah, we have to go to unconventional (more expensive) oil and natural gas." EnCana head talks about growth over time and makes it sound like everything was going to be ok.
This segment will re-air at 9:50p and 12:50a EDT. Not all that interesting...but Cramer did say he expected some good quarters from these companies.
The Lemming Head does not like Nonsense Noise that tries to throw it fairly off balance and into the blades of the spin zone. Spin zones get the head dizzy. Dizzy logic is not logic, our mamma always used to say.
Slowly-read, TOD logic might be logic ---if carefully evaluated.
Over the past year EnCana has been divesting itself of all "non core" assets, including:
Their strategy has appeared to me for a long time as recognition that hunting for oil internationally is going to be ever more complex and costly (inferred from actions) and that natural gas, with a more or less captive North American market, offers a better reward for the investment buck.
In essence they are betting the company that conventional natural gas production has peaked and that the unconventional is the only place any growth will come from. Its not an inconsequential bet: ECA is the largest producer of N.A. natural gas.
Besides, he wasn't asked if he thought the industry could generate enough growth from unconventional sources to meet demand and reserve declines. Not sure what his answer would be. The only Canadian CEO of a major on record as suggesting there might be a problem just around the corner is Talisman Energy's Dr. Jim Buckee, but he was strictly commenting on overall world capacity not on peak oil.