RE:Vermillon reports AECO $3.15Wow... it must be a interesting experience to be cast in a movie!
Last Year the Q1 was released on May 6... I would assume this year would be near the same date.
Interesting gas storage reoport today in BCF:
current year 5 year ave
Lower 48 states 15 67 (Range 16-110)
East (6) 17 (Range 4-26)
Midwest 6 12 (Range (5)-19)
Mountain 1 4 (Range 1-6)
Pacific 7 7 (Range 5-12)
South Central 6 28 (Range 8-48)
Salt 2 10 (Range 2-19)
Non Salt 4 17 (Range 6-29)
Every single region in the US had gas injection (increases) which was less than any of the prior 5 years. To me I assume that each item is an "outlier" and statistically would be outside at more 2 standard deviations (95.4%) of the normal distribution.... Extremely bullish in my opinion.
In particulare I'm interested in the 3 key areas. Midwest & East where 38% by population & The South where more than 50% of gas is consumed/exported.
In particular The South is the area where gas seems to be tightest as exports grow and supply is not growing at this point. The growth in drill rigs still has not been enough to overcome the depletion rate of the Shale Gas Wells.
The US is just starting to realize that they are tight for gas in 2021 due to:
1) 35% growth in exports of LNG (EU & Asia) & Mexico pipeline Gas
2) The debt heavy producers inability to raise equity or debt becasue shareholders & banks are demanding return on capital employed.
3) Covid 19 loss of drilling in 2020-21
We are seeing the results of the situation now. If gas goes above US $3.00 in the US we are going to see the cash generation for Canadian Companies.
Very exciting times ahead for Nat Gas in Canada