RE:RE:RE:RE:RE:Rig counts continue to drop, Shale growth stallsdont believe SU and CVE get enough added value to their business models when you look at their respective downstream operations.
Lots of added cash to be made there. Both had refineries off line in Q1 but thats changing.
SU had Commerce City back on line to begin Q2 after being down most of Q1.
That 100k bbl/day supplies 40% of the gas for Colo state.
3-2-1 crack spreads are still holding over $30.00 Thats well over historical range.
"From 1985 to 2021, the WTI 3-2-1 crack spread averaged about $10.50 a barrel. Even between 2004 and 2008, during the so-called golden age of refining, the crack spread never surpassed $30."
Providing demand the EIA is talking about for rest of this year & 2024 holds up, and operational effiencies hold up, these 2 have potential to make a serious move from here.