Cenovus Energy Inc T.CVE

Shale giants say they won't drill more

[Quintessential1]

"Not even US$200 a barrel"

GL Longs


https://www.bnnbloomberg.ca/not-even-us-200-a-barrel-shale-giants-say-they-won-t-drill-more-1.1725261

[PabloLafortune]

Shale has limited reserves. Cenovus does not.

[Quintessential1]

It is about the lack of supply from American shale producers shoving the price of oil down as they have been able to do in the past.  Cenovus's reserves won;t be worth squat if the Americans start flooding the market again. GLTA Longs 

[PabloLafortune]

Tourmaline's presentation has a slide that outlines the limited # of tier 1 locations in the various shales. This is the root cause of the reluctance by many shale giants to increase production. They are being rational given their circumstances. Cenovus doesn't have that problem.

[Quintessential1]

I never meant to imply that Cenovus had a problem other than low oil prices like the ones in 2018/2019 when Shale producers flooded the market and took oil to $40.  The article was meant to illustrate that they will not have that problem in the foreseeable future either. GLTA Longs