RE:RE:Oil Price DifferentialsThermal operators reported cost is not an all in cost. It is normally reported as ex energy costs so condensate and natural gas are not included in the operational costs. In my example where just based on the shipping end of the business, companies are loosing $1 / barrel, you have to add the reported operating cost to the loss which in MEGs case would make the loss $8-10 / barrel.
With a 3b$ debt, companies like MEG won't last very long at these differentials. The banks may very well force the HSE deal to protect their investments