OTCPK:PDPYF - Post by User
Post by
bigreturn11on Apr 28, 2020 8:18pm
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Post# 30964344
Gas Inventory & Demand - Store Oil or Shut in Oil
Gas Inventory & Demand - Store Oil or Shut in OilDeserves its own post.
Just wait until the land and tanker storage is full.
A VLCC tanker can cost as much as $250,000 USD per day aka $7.5 million USD per month aka $3.75 USD per barrell per month to store. There'll be 300 million barrells on tankers that are costing large $$ in a tough market. The empahsis for poducers will be to shut in non-essential production and unload the ships that are costing signifcant dollars to store.I hear the shipping ports in Texas and California are loaded with oil storing vessels.
With global consumption around 70 million barrels per day for the forseeable future, this will take 12 to 24 months to draw down the extra oil in storage, even after major curtailments.
This gas associated production cuts are going to persist for over a year and what a time to have a shortage looming. You can't just flick a switch and gas production on.
The new normal is that gas demand is here to stay folks! Watch out futures, pony is coming to sign some long term sweetheart deals that get the drill bit turning and hand well-deserved profit back to shareholders after this long wait....5 to 10 year production hedges I'd bet. Lock it in while you can Western Canadian utilities. Lock it in Canada LNG. Lock it in Fortis BC LNG. Lock It In!