Dondon(and Willy) in your honest opinion what do you think the following statement (taken from your post) means?

At November 11, 2009, Connacher had the following WTI crude oil price-hedging contracts in place : April 1, 2009 - December 31, 2009 - 2,500 bbl/d - WTI US$49.50/bbl

Is the above suggesting that CLL is selling 2,500 bbl/d of Bitumen to OPTI Canada upgrader for US$49.50/bbl?

Or, is it possible that CLL sign the financial contract (for the fee) with the Oil Futures Trader(speculator), that in case that WTI (Louisiana sweet light oil) will go below US$49.5/bbl the trader will cover the difference.

If the WTI goes above US$49.5 Connacher will pay to the trader the difference in US$.

For exmple: let it assume that the WTI drooped to US$40. For the above contract CLL would receive US$9.5 X 2500bb per day.

If the WTI oil goes up to $77 (today price) CLL will have to pay to the contract owner US$27.5 times 2500 per day= US$68,750 per day (I wish I could make as much per year).

Do you think this is possible or maybe I am just crazy old fellow poster who has nothing to do except to read this insane board?

I asked the same question my granddaughter. I may give you her point of you on headging on the weekend, if I finish my gyprock work in my kitchen, so my wife may consider to not to kill me.