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TWST: What do you focus on over the past year as the precursors for the energy companies’ performance in 2001?

Mr. Plexman: What we’ve seen, of course, is a “dramatic” increase in the price of oil over the past 12 months. The strength in oil prices has been a surprise to most investors. Most investors don’t think the high price level is sustainable. We don’t disagree with that. The oil prices have peaked; we saw WTI at $37-$38 a barrel back in the fall, and we’ve seen prices correct from there. However, there’s a good chance that we’ll see oil prices stabilize in the mid-$20s. It still is a cyclical business — but the combination of a more disciplined approach by OPEC and, really, the absence of any major new non-OPEC sources of supply on the horizon means that prices could very well stabilize somewhere in the mid-$20s rather than in the high teens.

TWST: When you look at management teams — specifically today, with the ups and downs of the industry over the past 10 years — are there enough good players available to keep this industry together and to keep it going over the next few years? Or have they lost too much talent?

Mr. Plexman: I guess we’re a little biased in our view; we think we have some world-class companies up here that are in the process of getting the recognition that’s warranted. Hopefully, their participation in the conference will assist that process. We’d put an Alberta Energy (TSE:AEC.TO) up against any E&P company anywhere. Gulf Canada (TSE:GOU.TO) has over a trillion cubic feet of reserves in the Mackenzie Delta, and this is an area getting a lot more attention with both Canadian and US companies now launching drilling programs there. They’re trying to figure the fastest way to get the proven reserves of gas they have out of there — and that’s in addition to having good short- and intermediate-term prospects, as well.

TWST: Gulf Canada is in your conference group. What is your assessment for its 2001 performance?

Mr. Plexman: Gulf Canada has always had a strong resource portfolio. Now it’s much better balanced as a result of the acquisition of Crestar Energy. That is another example of a very timely acquisition that looks very attractive for Gulf’s shareholders. Basically, they were able to double their natural gas production in Western Canada as a result of that — and with gas prices rising, the timing couldn’t have been better. About 80% of Gulf’s production is in Western Canada now. They also have a presence onshore in Indonesia on the natural gas side. The exploration work there has been highly successful, and they’re in the process of converting the substantial reserves that they’ve discovered into production, and contracts are being implemented that will see them double their Indonesian natural gas production over the next couple of years — and there’s a lot more to come. They have a solid base in Western Canada, expanding oil and gas production in Western Canada, and growth in Indonesia. One of this company’s legacies is they have proven natural gas in the Mackenzie Delta. That gas will be finding its way to the market some time this decade.