RE:RE:RE:RE:RE:The ‘Canada Needs More Pipelines’ Myth, BustedThere are a number of factors not related to Canada that will come into play. I state this as CJ is one of the best operators and higher prices will help them overall.
- The price of oil to increase. This will happen as SA still holds the ability to influence prices.
- The emergence in the oil trading community that crude quality matters. Shale is producing a lot of light condensates which produce between 1/3 to 1/2 double the gasoline and between 1/3 to 1/2 less diesel. This presents a problem in that worldwide, gasoline demand is decreasing while diesel demand is increasing. CJ crude is ideally suited for the refineries in the US. This is starting to make its way into the mindset of the traders. This will change how we measure storage in the US as no one knows the types of oil in storage now. The only measure I know of is the Cushing Inventories as that is where most of the CDN production heads to. This should lead to better pricing for CDN oil.
- Shale production to not increase by as much as it has. This is a wildcard as there is no incentive to make profits or positive cash flow as long as wall Street is willing to fund their madness.
Canada needs to help itself in October 2019 by getting rid of the Lieberal morons. The investment climate in Canada is considered toxic because of their foolish idealogies as showcased in Bills 69 and 48.
CJ will do okay in the current enviroment and will make money. We need investors to return to increase the share price. The solution is going to take over a year. Be patient as it is coming around. Volatility is the norm, get used to it.