RE:I Believe That MEG IS PUSHING AWB Barrels Into US STORAGE !! Interesting, Eigen. The only problem with your post was that the company will probably be bought out before Wti hits $40, which will likely happen by mid-summer.
Eigen337 wrote:
The pipelines are FREE and MEG has NOT posted any FURTHER BOP reductions !!!
They have ~ 1.9 million barrels of LEASED storage space in the US !!!
Texas SOUR was recently selling for as LITTLE as USD 2 per barrel !!!
Makes ABSOLUTELY NO SENSE to sell at these CRAZY LOW prices !!!
Unfortunately, ALMOST all US producers are looking for crude oil storage capacity !!!
MEG has the balance sheet CASH to PREPAY for say a SIX month storage window at other commercial storage sites which REMOVES the credit risk for these companies !!!
They can transport MILLIONS OF AWB barrels by CHEAP PIPELINES, STORE IT, and hopefully SELL IT in the fall when heavy oil prices will be STRONGER !!!
This FITS beautifully with their September TURAROUND at Chistina Lake !!!
Remember that they were looking for MORE crude oil storage in 2019 when their FS/S pipeline capacity increased to 100K bbls/d on July 1, 2020 (from 50K bbls/d NOW) and they NEEDED that capcity to have GREATER FLEXIBILITY with the APPORTIONMENTS on the ENB Mainline pipeline system !!!
This is pure speculation.
Eigen337