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 07, 2020 10:41pm

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Post# 30889009

RE:RE:A perspective on the World Oil Situation

Oil storage capacity is close to being breached in various areas around the globe already. One of the largest storage hubs in the world is essentially there now. The number of storage facilities reaching their capacity limits will increase each day like a virus. Relief will not come until commerce is back to 100%. This isn’t happening soon unfortunately.

And think about all those supertankers being filled up around the world now that will naturally be given first priority to empty when the time eventually comes to start drawing down all this excess oil in storage. There is only one direction front-end month oil prices can go...down. Further out prices will continue to be pressured as well.

JMHO. GLTA.

https://www.google.com/amp/s/www.bloomberg.com/amp/news/articles/2020-04-02/oil-tanks-at-vital-africa-hub-almost-full-as-crude-floods-market

WheresMeGold wrote: That agrees with my statement last week that we will essentially fill global storage capacity within 2 months. OPEC+ can at best push out the timeframe of this inevitability.

VET is poorly hedged in oil and it gets only worse in the second half of this year going forward. JMHO. GLTA.

Fantome wrote: I had a great conversation with an old (old in both senses of the word..lol) colleague...who is one of the world's experts on world oil supply and demand.

Without cuts production coming our of the OPEC+ meeting....the world storage capacity will be full by mid May. Prior to that...starting in about two weeks some producers will have to shut down production since they are linked to pipelines that go to storage faciltiies that will be full by the end of April.

Irrespective of what OPEC does in the meeting...everyone will be forced to cut production since there will nowhere to store the oil. In addition he expects that the price of at the end of May will be much less than it is now and Canadian producers will see single digit prices for oil..WCS is basically there already.

Pipeline throughput will fall dramatically..in fact as a sidebar....ENB announced today that they have unused space on the Mainline Pipe....other sources tell me that the unused space is currently about 150K barrels per day...this number is likely to increase going forward..

As always...for info only....up to each of you to decide what you want to do about it in terms of your investments...