$Crude Oil Futures(JAN5) (CLmain.US)$$Novagold Resources (NG...

$Crude Oil Futures(JAN5) (CLmain.US)$ $Novagold Resources (NG.US)$ Demand is up, but our ability to add supply is HIGHLY constrained. The two biggest problems are:

Financing. It's very hard to get borrowers to invest in oil and gas right now, thus, any new D&C activity must be financed by free cash flow.

Operating costs. Everything has gone up in price. A lot. I know it's a meme on here, but inflation is very real. Chemical costs, steel costs, hydrochloric acid costs, labor costs, all have gone up more than 15% this year. This heavily impacts our ability to D&C new wells and stay cash flow positive.

Demand for WTI and NG hasn't decreased substantially from pre-pandemic levels. We are only going to see an even further crunch in prices as demand continues to remain constant and our ability to add to supply decreases.