Canada's oilpatch is flush with cash -

  • so what are they going to do with it?

Me frantically waving my hand pick me … how about giving the surplus back to the shareholders? }};-D

Tim

https://www.cbc.ca/news/business/bakx-wti-brent-profit-oilpa…

Business·Analysis

Canada’s oilpatch is flush with cash — so what are they going to do with it?

Record profits for the oilpatch will boost government revenues too

Kyle Bakx · CBC News · Posted: Aug 18, 2022 4:00 AM ET

The Canadian oilpatch is basking in its most lucrative year ever. Hefty prices for both oil and natural gas that have pained consumers are delivering a bounty of riches for the industry.

That bounty was reinforced over the past few weeks as companies again posted extraordinary profits. While commodity prices have softened slightly, there is a growing consensus that prices will remain above average for some time.

The massive windfall for the industry is having many impacts on the sector as debt levels plummet, shareholders benefit and government coffers in Alberta, Saskatchewan and Newfoundland fill up.

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https://schrts.co/QzUxYtNf

Using the weekly chart with default moving averages, it looks like a one year period for price oscillation.

Just eye balling it. It looks like we can expect moderating prices down into the high 60’s in a year or so. While this is double what the frackers need to make money, it will not be a swimming in cash situation.

Personally, I would pay down debt, hold some cash to buy companies that find themselves short on cash and long on reserves.

Cheers
Qazulight

Just eye balling it. It looks like we can expect moderating prices down into the high 60’s in a year or so. While this is double what the frackers need to make money, it will not be a swimming in cash situation.

Personally, I would pay down debt, …

That is exactly what most of them are doing … however there is a great need for Canadian Oil to be exported from the Gulf coast and now the means to get it there with more to follow?

Tim

https://context.capp.ca/energy-matters/2022/big-jump-in-cana…

Big jump in Canadian crude oil exports via U.S. Gulf Coast

Improved pipeline capacity means record high Canadian exports – but Trans Mountain remains crucial.

By Holly Quan

Feb 17, 2022
Canada’s ability to export our responsibly produced heavy crude oil to international markets has long been limited by lack of pipeline capacity from the oil sands region to coastal tanker loading facilities. But that situation has changed thanks to new pipeline capacity connecting Canadian producers to the U.S. Gulf Coast.

In 2021, Canadian exports from the U.S. Gulf Coast averaged more than 180,000 barrels per day (b/d) and reached nearly 300,000 b/d in December. That’s up from an average of 70,000 b/d in 2019 and 2020. The accelerated pace of export is expected to continue in 2022 as international supplies of heavy crude remain tight.

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