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by Stockwatch Business Reporter
West Texas Intermediate crude for April delivery lost $2.79 to $22.43 on the New York Merc, while Brent for May lost $1.49 to $26.98 (all figures in this para U.S.). Western Canadian Select traded at a discount of $13.75 to WTI, down from a discount of $13.00. Natural gas for April lost five cents to $1.60. The TSX energy index added a fraction to close at 45.17.
For Canadian oil and gas producers, "the most defensive approach you can take is to do nothing," advises Tudor Pickering Holt analyst Jordan McNiven. His new report, "A World Without Rigs," says conserving cash is the only way producers can survive the latest downturn, which has seen global oil prices collapse to just $25 (U.S.) a barrel from over $60 (U.S.) at the start of the year. Mr. McNiven said in an interview with the Canadian Press that these low oil prices could easily last six months or more. Fortunately, his analysis indicates that all Canadian producers -- or at least all the ones that his firm provides coverage on, which include some oil sands companies but certainly not all -- are capable of surviving a $25 (U.S.) oil world even if it lasts for the rest of 2020, provided that they halt all but the most essential spending. This means stopping all new drilling and even shutting in existing wells if they are losing money. "I think all of us believe there will be a recovery at some point," said Mr. McNiven, but in the meantime, "It's about hunkering down and making sure you're around to see the other side."
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same type of brains like the "wash your hands" "avoid crowds", soon like the analyst the health talking heads will make a law "no more than 1 person in public or private"...govenment with bazillions of dollars, still no research to find the easy killer of coronavirus, no money to give unemployed to make masks, no renting of coliseums to train en masse nurses aides, doctors aides...just talk, and stopping people creativity and productivity, ask how the f did we end up with these losers running the world? change is now, step up and be the change and demand taxpayer money back from these talking heads, seize their assets