Sharky:

I think cutting production was a smart move,,why sell at a loss?, once it's out of the ground it's gone for good. My guess is the new production levels will be just enough to cover costs and debt repayment. Timing? Could be a move of solidarity with OPEC. The tar sands are being counted on to replace any OPEC reductions. By cutting oilsand production the message CLL is sending is DON'T count on us to sell at a loss to hedge OPEC cuts.

As for Algar, maybe he wants to keep the cash to cover potential losses while this storm rides out, oil prices may go down to $25 and who knows how long it will be before it gets back to a profitable price.