RE:RE:good day for CPG to start buying back shares3 weeks to repair, let's say 4 million bls/d as they claim to have 2 million back as of yesterday, is still 84 million barrels less from inventories.
Think about that, we look at API/EIA inventories weekly and get excited when we see a 5 million barrels draw...
3 weeks to me is also BS. As I mentioned previously on the CJ board, you have to remove all that wreckage, then re-install, weld, verify to spec, then restart all this equipment. And by the way, this is highly unique and specialized equipment that has to be re-manufactured and not available on the shelf.
It took over 3 months for Syncrude to restart from a blown up transformer which led to solidification of tar sands into their process last year. Now you have multiple missiles hitting a site in critical areas and 3 weeks to fix it all up?
Today is nothing else but, profit taking. However, I kind of like for oil to return to a lower level as it will prevent U.S. shale from returning to growth. Already there were various signs of a plateau and likely coming decline.
Our Canadian companies are still so cheap that we don't need high oil prices. $55-60 U.S. WTI at current exchange rate generates significant free cash flow which can be used to reduce debt, pay dividend, buyback stock, improve operations or all of which makes them even cheaper over time.
It won't be easy to keep that in mind today as they are trashing oil and there will be quite a retreat in our stocks but, that is the reality going forward. What we need is stability/confidence in current pricing range and a bit of improvement on the egress front.
Cardboard