Question-and-Answer Session
Thank you. [Operator Instructions]. The first question will be from Ryan Todd of Deutsche Bank. Please go ahead.
Ryan Todd - Deutsche Bank
Good morning, gentlemen. I appreciate all the details you have given us on cash flows and liquidity, and just had a question. So it is fair to say that you will try to maintain going forward your capital spending within in terms of debt pay down plus CapEx spending within generated cash flow? And how much you're assuming... you have a lot of room on your credit facilities as well. Given opportunities is there any willingness to dip into credit facilities or is it going to be simply focused on maintaining within your cash flow?
Steve W. Laut - President and Chief Operating Officer
I think what we're going to do here is pretty clear as we have a lot of flexibility in our capital budgets, we have no intention at this point in time to dip into the bank line. There will be opportunities, but I don't expect them to be showing up here anytime soon. I think it can take some time for this whole thing to unwind. So we will live within our capital budget.
Ryan Todd - Deutsche Bank
Great, I appreciate it. And you have a quite a bit of flexible capital spending in the budget. It looks like about half of the budget next year is relatively flexible. Where is most of that flexibility and then again if you look at lower oil price environment, if you look at the $60, $50 level, and you've said that your focus is on generating not production growth, but on generating value and how does the capital allocation change within your flexible asset in terms of the $60 the $50 environment. Is more of that money going to heavy oil versus convention gas or vice versa, how would you prioritize your spending on your assets?
Steve W. Laut - President and Chief Operating Officer
Actually to look at that, obviously addressing the flexibility the most flexibility in our capital program is obliviously in Canada, again the conventional asset and we look at what gives us highest return over the long term and also in the short terms to capturing the price spikes when we see, so right now obviously oil is still quite a bit better than gas, and we are always monitoring the relative economics between oil and gas and heavy and light and other projects as well. We obviously have water flood optimization other enhanced recovery projects. We all have to balance near, mid, and long term aspects of all our program. So we do have a conventional flexibility. Depending gas prices aren't that great right now oil is much better. And so as you can see in 2009 most of our capital is directed towards oil and heavy oil.
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