with spreads so wide?
7 replies (most recent on top)
Hopefully there is a good amount of production hedged with W.C.S price in the toilet.
Last Canadian storage report from Genscape had 32.3MMbbls in storage. Total Canadian capacity is 62MM.
A/G storage is full
There’s 10MM bbls storage capacity available at Hardisty currently. On a longer term basis Bruderheim will also have a sizeable cavern storage capacity.
Is enough above ground storage available? Everyone wants that.
If they can agree on economics and technology.....seems the grump over promised the board and is going to under deliver big time. And as usual, corporate strategy and operations agree to disagree. But hey raises and juicy bonuses for everyone!
They’re planning it on a short term basis. Problem is it takes time to recover the production and they lose ~10% to the reservoir.
They can also store it above ground for about $1 a month - makes sense with the contango situation for WCS.