Enbridge has announced it is considering a major pipeline from Cushing, Oklahoma, to the gulf region. Periodic gluts of oil being stored at the huge Cushing complex artificially affects the price of West Texas crude and additional takeaway capacity would help remedy that. Enbridge is considering a 24-inch pipeline, called the Monarch Pipeline, which could initially move as much as 150,000 barrels per day of oil to Houston. The pipeline could eventually move as much as 350,000 barrels per day. The pipeline appears to be contingent on whether the TransCanada Keystone XL from Canadian oil sands to Texas is allowed to proceed; the US government continues to look at environmental concerns.
In another story regarding Enbridge and its partners, it was interesting to note that the company said it expected no impact to earnings or payouts due to recent oil spills. I remember right after the spills, there was a huge pullback in share price, providing a great buying opportunity. The photographs of four men involved in the clean-up of the first spill suggested the size of this spill which garnered a lot of space in the press.
I purchased $5000 shares of OASIS on first day of IPO Today worth $6800 37% increase in 3 months
ReplyDeleteI think it still has considerable up side. dholmen
I won't disagree. Some say it could be another CLR. I have a complete post on OAS talking about this exact thing.
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