I agree. Removing these hedges would be a fantastic way to take...

I agree. Removing these hedges would be a fantastic way to take advantage of this volatility.

Unfortunately, I think the board would be much more interested in saving the cash to spend on projects in the future - with a market cap well below the value of current projects - I think they are going to try and produce their way out of this one, and build up cash as best they can to show the market that they are indeed undervalued.

I think your right though - OPEC would only have a spare capacity of 2-3 mill bpd at the moment, not many new oil projects coming online (as it is 2008 +2 years - investment ground to a halt) so any uptick in demand over the american summer is bound to have a positive impact - espec when the surplus 50million barrels in America start to deplete to long run averages.