Who’s going to buy it? Report from Reuters.
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Someone will buy it for the right of way. Maybe carbon capture might be able to use some of the line (with some integrity) but that might be too late with this Administration’s eco-stances. Another missed opportunity resulting in a fire sale.
Kinder Morgan or Williams?
The lines leak like crazy and in some cases they are out of DOT compliance. These issues are rooted in the fact that the pipe material does not align with the service it is in. It is more cost effective to jettison these assets than try to continue patching them or replace them. I am sure there's similar conversations being made regarding the future of El Segundo now. Chevron is no longer looking at long term (15+ years) strategies. The horizon appears to now be 3-5 years. Poor performance on reserves replacement due to lack of qualified talent, forces the company into a more expensive posture of M&A in a meager attempt to mitigate production decline. Operational incidents (BBLT, Bishop, El Segundo, etc.) just exacerbate the company's financial position by wicking away much needed funds. These recent reorgs are the result of management's inability to recognize these issues and get in front of them and control the situation. It is obvious that the hemorrhaging is not over after seeing that the regime's myopic cost cutting strategy focused on eliminating experienced personnel that could have potentially maneuvered the company through these troubled waters. Instead of rallying the troops and bringing the company together to focus them on resolving the problems, the CEO has made matters worse by shifting the culture away from being "nice" to one another resulting in yet more internal strife and distrust. This puts the the company on the cusp of a proverbial death spiral for the next ten years. All of this because of bad management and bad decision making.