They finally raised the gas prices in Winnipeg from $1.39 to $1.49.. Did it increase all at the same time across the country?
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Feb 8th, 2022 10:23 am
Feb 8th, 2022 10:30 am
Feb 8th, 2022 5:41 pm
Feb 8th, 2022 5:44 pm
I wouldn't say selling at/near the top per se as we could have a lot of runway left if the various analysts are to be believed. Right now there are more bulls than bears in the oil sector and a minor correction that we are seeing now is a good thing to keep things moving forward.
Feb 8th, 2022 5:47 pm
Feb 8th, 2022 5:50 pm
More talk of an Iranian nuclear deal. I'm not worried however as the demand side of the picture is still sound and OPEC+ has shown to have production issues as they still can't produce up to their own imposed quotas. If Iranian oil is introduced back into the market today, OPEC+'s production would be just above what their quota limits are now. In another month, they should be below those quota limits again as another 400,000 barrels would have been added to the quota.
Feb 8th, 2022 7:29 pm
Feb 8th, 2022 7:51 pm
A couple of things...1xTiMeR wrote: ↑ I am a bit skeptical on WTI prices. Historically, OPEC and shale would just flood the market so fast it kills the price. We all know Saudi's can do that at anytime and we know that US shale is quickly coming online to cash in on the run.
I have started some downside WTI positions, will prob continue to add. There is an obvious market imbalance of demand and supply but I would not bet against US shale and OPEC playing nice and not to cash in on these higher WTI prices.
I would not be surprised if companies started to offload assets because they would be deemed higher valuation when WTI is this high.
https://www.statista.com/statistics/748 ... ng%20wells.
Feb 8th, 2022 8:03 pm
All I know and we know for certain is that US shale is coming back online. The height of WTI prices in 2018 was about 70-75 bucks, we saw the highest number of shale rigs.craftsman wrote: ↑ A couple of things...
1. The Saudis only flooded the market to drive the US shale producers out of the market. According to various published reports, the Saudis (as well as most of OPEC+) NEED $80+ WTI pricing in order to balance their books as they really have no other industries in most of these countries.
2. The US shale producers were in a drill baby drill philosophy for years as they were able to get financing to do so. In the last 4 years or so, that financing has dried up as the investors have finally realized that they go back next to nothing from their investments. The financing has continued to be dry even as various pundits predicted a resurgence in drilling as oil when into the $40s (as that's the reported break-even point for shale), then the same cries came in the $50s, then the $60s, and the $70s. Drilling by the majors and most public companies have not returned in any meaningful way in the US. Sure, some will point to the increasing rig counts in the US as a sign that drilling is back baby! But look at the actual increase rather than the headlines... I believe the US added three (yep, 3) new rigs last month. To put that in perspective, in November of 2018, the US had just under 1100 rigs running where they have 613 as of Feb 4, 2022. Have a look at this chart to see the change - https://ycharts.com/indicators/us_rotary_rigs.
3. Any increase drilling will take time for production to come online so just because they drill today, doesn't mean oil will be available tomorrow.
4. OPEC+ isn't producing their own stated quotas - they have a short fall in production of 800,000 barrels so about 2 months of quota increases.
Feb 8th, 2022 8:21 pm
And we are at less than 60% of the rig count number that we were back then with ONLY 3 rigs added last month. If the US industry was serious about getting their production back online, we should be seeing a much steeper rig count curve over the past year as the price of WTI went up but we didn't. If you look at US production numbers, they haven't even gotten back to pre-COVID levels and seems to be range-bound in the past year - https://ycharts.com/indicators/us_crude_oil_production - as the rig count increased. In other words, their increased rig count basically made up for their decline rates. So, unless there is a large increase in rigs soon, we aren't going to see any material US shale oil for at least 6 months to a year.
I'm saying that their share capacity is done for many of the OPEC+ nations as I'm sure those OPEC+ members who can produce to the quota are. The problem is those that have quota room and are running at max right now as those countries can't increase production even if they wanted to right now. Can they fix that? Of course they can. But given the current supply chain issues, getting the parts to fix it might be a problem regardless of how much money they want to throw at the problem.1xTiMeR wrote: ↑
If you are saying OPEC and OPEC+ will forgo output to try to sustain higher prices, then yeah, I can see WTI staying up here. But if you are telling me OPEC and OPEC+ have short term production issues, I would think the supply will come back sooner than later, and demand will fall as it always does when no one is looking.
Feb 9th, 2022 9:24 am
Feb 9th, 2022 10:37 am
Feb 9th, 2022 10:49 am
Feb 9th, 2022 10:59 am
Feb 9th, 2022 11:17 am
Been adding to AAV as well last week& yesterday; hoping the street starts to recognize its low(est) cost structure. The carbon storage could be a freebie
Feb 9th, 2022 4:45 pm
Feb 11th, 2022 10:45 am
Feb 11th, 2022 11:38 am
I recently added IMO as a long-term dividend hold. Time will tell if that's a good decision or not but they have have a dividend grower for 27 years. Like you, I sold my VET and continue to hold positions in BIR, WCP, SCL, SU, and CNQ in various accounts (not including pipelines). Probably sooner rather than later I need to determine what my exit strategy will be on these, if any. You seem to be a lot better at focusing on pure dividend payer/grower holdings than I am.Stryker wrote: ↑ I've kept ENB and TRP in the portfolio long term but sold off the producers and service companies we owned in 2014-2015. The only one I should of kept was CNQ, but others like AKT, CEU and ESI I don't miss at all. All paid good dividends at one time, but AKT and ESI eventually eliminated their's and CEU is now paying out a fraction of what they used to. Always easy to look back and realize which one's should of kept, and those that should have been offloaded. When the storm hits a sector, not quite so easy.
Feb 11th, 2022 11:48 am
Feb 11th, 2022 12:19 pm
The way I remember IMO in the early 2000's was that it was a pretty good dividend grower, but not quite the higher yields that I was seeing from Exxon, Imperial Oil's parent company in the U.S. I was envious to say the least. I notice that the yield on IMO has risen since then, but no I never bought the stock. Which would survive as an entity on the TSE, both Imperial and Shell Canada, or only one of the two? As it turns out IMO is still there.Capt. wrote: ↑ I recently added IMO as a long-term dividend hold. Time will tell if that's a good decision or not but they have have a dividend grower for 27 years. Like you, I sold my VET and continue to hold positions in BIR, WCP, SCL, SU, and CNQ in various accounts (not including pipelines). Probably sooner rather than later I need to determine what my exit strategy will be on these, if any. You seem to be a lot better at focusing on pure dividend payer/grower holdings than I am.