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Gas? Don't make me think about the Orange basin again. Why they couldn't make that work? Must say SA imploded at that time.
This Dorothy, does she have a link in her background to Brasil/Petrobras by any chance?
LoL you mean pump it back down as it comes from Russia and SA. TLW was already doing that with gas when Dotty stepped in.
Interesting.
Wouldn't it be funny if the Brent field would filled up as storage, the entire North Sea perhaps?
RENEWABLE ENERGY at last ;-)
'free up storage for cheap oil'
Good point. Where production was revised down (kitchen sinked) you might imagine that capacity could be commercially exploited to enhance the financial performance?
Where TLW has 'retired' assets and operations across 10 or more countries, do they free up storage for cheap oil? Can TLW use this as a commercial opportunity?
'9m is good, but 15 would be perfect...'
anything improving sentiment is worth 10 to 20% on the SP. Demand is down c.25m per day so 9 or 15m stretches out storage several months. Is this time enough for CV to go away and bau business to return?
... with shorts Tullow?
We need a higher oil price.
'the buyer would go elsewhere'
I dont think that is right. TLW would sell at the lower price and collect the difference on the hedge from the institution who went long on the oil price ie if the hedge was $55, they hoped it would be $80. While TLW revenue is protected, a financial institution who provided the hedge is hurting unless they hedged...
I doubt you understand the oil market. Its controlled. It will be priced where our masters want it priced +/- the bumps. There are other factors including the fact no one can produce for long at these low prices. All the breakeven are too high.
“Saudi Arabia said it would call an emergency meeting of the Organization of the Petroleum Exporting Countries (OPEC), Saudi state media reported. The Wall Street Journal reported that the kingdom would consider dropping output to roughly 9 million bpd” Reuters... 9m is good, but 15 would be perfect...
Like MarcelK asked:
For TLW to have hedges, it would make sense that their buyer is committed to the hedging price. Otherwise, when POO goes lower than the hedge the buyer would go elsewhere. Unless the small print would have clauses to protect in similar circumstances.
I'm not sure I belive all the hype about increased production and storage - because they are all in this together - one big game.
It won't run out.
And what utter nonsense: 'The likes of tullow Premier and Enquest will be obliterated to low single digits as they will have no buyers and will have to shut in production!!'
DON'T THEY HAVE CONTRACTS, OBLIGATIONS TO DELIVER? NO?
REALLY? TULLOW ROAM THE STREETS EVERYDAY ANEW HOPING TO SPOT A BUYER?
Massiveray, I agree with u. I don’t think ppl understand how much of a nutcase that guy really is.. if we get confirmation tomorrow that SA and Ru made a deal to cut 15mb that would send the price close to $40.. I always said that a combined deal of 5-7m won’t be enough but will provide short term support.. 15mb deal would be nothing short of a miracle.. If it gets confirmed tomorrow, I am changing my view completely and in this case our new bottom will be above 20p.. this confirmation will truly be transformational for the oil market
Agree oiluser when storage runs out then oil price will really tank !!
How low is the question ?? The likes of tullow Premier and Enquest will be obliterated to low single digits as they will have no buyers and will have to shut in production!!
Very sad times indeed but staying a live seems to be the order of the day at the moment.
Stay safe and healthy..
Oiluser, I agree. Saudi tankerships had nowhere to go already. But: another round of bad news out of China: new lockdown in a region. I assume Corona will take a few months from here, with less oil consumption worldwide.
I think April & May will be problematic, after that a rise. For TLW no problem I reckon.
Although I don't know how a hedged oil price works for TLW, if oil cannot be sold at all… anybody?
Wheres it going to be stored ponzi,
It has to shut down, there isn't enough storage anywhere that can cope with the production at today's level. The projections for us oil production based on current and projected rig numbers is a drop of 6mbod. OPEC + doesnt have to drop 10 or 15mbod, but it will have to drop a significant amount as there is simply no storage capacity. China has been filling their tanks since February, it's also beginning to come back to normality with estimate of 70% back online now business wise.
Trump, is a fully fledged clinical narcissist, underestimate him and you lose, not only is he going to be re-elected, he is going to pull all the stops out..
Watch this space!
Download flight tracker24 and see worldwide flights live across the globe.
Live data
Oiluser I'm basically saying trump is full of s$$t and can't be trusted !!
If you believe OPEC will cut 15m barrels or anybody for that matter they are deluded and shouldn't invest on that assumption!!
Will not put 1p into this market until planes start flying and boats start floating and cars start moving ..
U are kidding? Ryanair grounded, af/klm 90% grounded, BA grounded, Emirates, Etihad operating at 30%. You must be looking at old data.
Download the app called flight tracker 24. You will see the flights for the whole world. It is very busy. Only U.K. has reduced flights.
So what market share are you referring to ponzi, is it the tanker storage market share.
Not sure if you realize what's going on almost everywhere, nothing is open, roads are empty, skys are empty of planes,
If shale wants to pump out oil at 18$ bbl it welcome too.
More chance me seeing Elvis in my local McDonald's !! OPEC losing 33% of their market share so they can support Shale its laughable beyond belief.
It's not like trump had made up stories before is it ..
Only savour investors got out on that rise .