Vermilion Energy Inc. T.VET

Alternate Symbol(s): VET

Energy Oil & Gas E&P

Vermilion Energy Inc. is a Canada-based international energy producer. The Company seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia. Its business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by value-adding acquisitions. The Company’s operations are focused on the exploitation of light oil and liquids-rich natural gas conventional and unconventional resource plays in North America and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia. The Company operates through seven geographical segments: Canada, the United States, France, Netherlands, Germany, Ireland, and Australia. In Canada, the Company is a key player in the highly productive Mannville condensate-rich gas play. It holds a 100% working interest in the Wandoo field, offshore Australia.

TSX:VET - Post by User

Vermilion Energy Inc.

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Comment by WheresMeGoldon Apr 03, 2020 8:05am

179 Views

Post# 30874935

RE:RE:RE:Saudi Arabia calls for emergency oil meeting

Moe, I suggest you look at it differently. Assume global storage capacity completely fills up within 2 months because it is. Have no doubts about that. What do you do if you are Saudi Arabia and Russia?

What you do is jawbone the price of oil up as much as you can, act like you want to work with Trump, sell as much oil before global storage capacity is hit, and then let the many weak hands collapse. This approach will greatly hurt Saudi Arabia and Russia for months but the payback will last many years.

JMHO. GLTA.

Moemoney42 wrote:

WheresMeGold wrote: Why would Saudi Arabia and Russia do anything to rescue high cost producers that largely are swimming in debt? Because they're also hurting from this drop in prices..! Why go through this pain only to snatch defeat from the jaws of victory? Because they realized they don't need $20 oil to accomplish that. $30 will probably do the trick Exactly even $40 would work most likely.! but why not kill off high cost producers more quickly with $20 when demand is incredibly low because of coronavirus. Again they can't afford too drag this out for their own stability.

One could argue that during this time of global quarantine/shutdown Saudi Arabia and Russia are showing restraint by not driving oil well into the teens. I think both will continue to dump enough oil to drive oil prices into the teens What's the point, when they can get 50% more for their commodity and still choke out the high cost players..? but start jawboning to keep it in the 20’s. Once the bankruptcies start to flow Already started.. so again why shoot yourself in the foot when the plan is already working it will then drive it into the teens as a final death blow. Game over. Saudi Arabia and Russia win.

VET is incredibly vulnerable. And so is MX if that is the case..! JMHO. GLTA.

oilisswell wrote:
No surprise there. Of course Trump will take the credit. He stated this:
"Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!"

Now I am quite pleased to see the price of oil and O&G shares rise. However, I have to believe this is BS. Adfter all, that cut would represnet nearly 50% of their combined production.

Of course it is denied by Putin. However, Russian Energy Minister Alexander Novak told Reuters it had no plans to crank up its crude output. Duh! SInce we are awash with oil, and running out of places to store it, incresing production will not translate into increased sales, only less revenue from what is sold.

With shale oil companies starting to cry uncle (bankrupt), the US will invariably contribute to the reduced production!