RE:oil production is USA will fall in 2016sorry I forgot to add, USA oil produciton will fall from jan 1, 2016 until 31-dec-2016 by over 1 million BPD as even higher oil prices will not start the drills going in a big way and natural declines will continue to decrease daily produciton.
in this light and higher oil prices the MEG shorts better run for cover and fast, as they have long life assets with low operating costs and low maintenance costs.
I don't hink they are looking for a JV unless they get some good metrics and with low shares outstanding they have time to wait for the best deal as possible.
rising oil prices mean meg will continue to layer in hedges to protect CF and they will actually make some free CF in q3 and q4, so again shorts that don't cover will be buying MEG back at over 10 once any deals are revealed.
Canada pension plan, OMERS, teachers pensions are all looking for long life assets and good cashflow and with lower debt and lower debt service costs MEG will transform into a darling from a black swan.
let's see how much USA OIL PRODUCTION drops this week and then see where oil prices are going to go.
COVER SHORTS COVER