the following is from same article,again boding well for Connacher in longterm,again the SUPPLY and DEMAND scenario comes up centre stage??

Because recession has reduced global demand, the world has excess crude production capacity. Some analysts do not expect that overcapacity to last long, especially if total investment in drilling and development is steeply curtailed. "World-wide, production from an average well-both oil and gas-declines at a yearly rate of 25 per cent. That's a formidable decline curve," Harvest's Zahary says. "The world cannot survive without energy. Oil prices will recover before gas, and gas will recover more quickly than the overall economy."

CERI economist McColl forecasts: "The more severe the investment decline, the bigger the price bounce is bound to be when it comes." Jim Gray, the retired co-founder of Canadian Hunter Exploration (which identified the Deep Basin in northwestern Alberta), recently predicted that crude will reach roughly US$200/bbl in five years. Matt Simmons, a well-known Houston investment banker and author, suggests that drastically reduced drilling conceivably could trigger price spikes as high as US$500/bbl within a few years. Until then, Bonnyville's Letwinetz comments, "it will be 'survival of the fittest' for the service sector.