RE:RE:RE:RE:RE:WTI $95 tomorrow?mrbb wrote: meritmat wrote: liljohnnyjoke wrote: if WTI is $95-100 by month end (especially with no supply disruption) it will be almost certainty for a fed rate hike on Nov 1 of .25 at least, then sell off of the broader market on recession fears once again.
Sounds like by the time Venezuala is back up to full speed Exxon will have its massive finds in Guyana (which Venezuala say is theirs) on line. Suriname is flush with oil waiting to come on production as well.
It will be Decades before Venezuala has any meaningfull production. I have shut in wells and facilities in Alberta and come back in a couple years to start them back up and its a pia, all sorts of issues. Never mind stuff shut in for years in the middle of the jungle. If I need something I run to my spuuly store or pick up the phone and get the services out I need. Aint happening there.
VZ can boost production by 25% i believe it when i see it. Most of VZ crude is heavy oil. Heavy oil pools aren't as easy to turn off and on like NG and light oil. Sanction lift only good for for 6 months, VZ need to import diluents (up front cash which VZ lack) to thin out the heavy oil for transport.
Also, whould chevron throw in lot of money into VZ for a 6 month run of production?
They likely just pump off the storage tanks and spend on the few easy low hanging fruit wells.