RE:RE:Good thing CR hedged gasTheoretically nat gas demand was not supposed to be affected by Covid, but Crude was (due to less commuter driving and less jet fuel demand). What we saw last week was a surprising drop in nat gas demand but not in crude demand.
I agree that it is very good for Crew to be cautious as they seem to be aggressive with their drilling program. The extreme market price change related to only one weeks numbers for nat gas is suspicious to say the least ,but it does illustrate that everyone should play their cards close to their vest.
Outside of North America ,nat gas surpluses vs last year have completely disappeared and the situation looks very constructive going forward. Too bad Canada must still bend down to the American machinery. Producers should be talking to the feds right now about expanding the west coast LNG industry.
I believe there are many LNG projects on the sidelines, they need to get reactivated. It is not good enough to just sit around and hope that the Americans will be favourable to us in the future Hedging only lasts for a short while. Long term contracts such as are available in Asia can allow us to build a stable industry deserving of much higher market multiples