WTI Flirting With A 62-Dollar-Handle -- February 20, 2018

$62? Flashback to a September 7, 2016 post -- LOL.

Price of oil (WTI), sweet spot: from a post dated September 7, 2016 --

Early this morning, well before the article [at the linked post] was posted, I mentioned that I'm completely content with $45 oil. In fact, I argue that the sweet spot for WTI pricing right now is $46 to $52. I used $60 as the high end of the sweet spot. I find it interesting that this Bloomberg article (at the link above) chose exactly the same numbers.  

*************************************

Now, Back to the Present

 
Active rigs:

$61.93↑	2/20/2018	02/20/2017	02/20/2016	02/20/2015	02/20/2014
Active Rigs	56	40	38	127	183

RBN Energy: Rising Canadian production, takeaway constraints and WCS price discounts, part 4.

With Western Canadian crude oil production rising, available pipeline takeaway capacity shrinking and crude-by-rail volumes rebounding, midstream companies are ramping up their efforts to get long-planned pipeline projects built. But that’s no easy task. Virtually every plan to add new takeaway capacity out of Alberta — Canada’s #1 energy-producing province — continues to face regulatory hurdles, and it remains to be seen which of the pipeline projects will be completed, and when.

We can’t just throw up our hands, though, and say, “Who knows?” With pipeline constraints out of Western Canada worsening by the month and having profound negative effects on the price of Western Canadian Select (WCS), there’s real value in reviewing in some detail what these pipeline projects are up against. Today, we discuss what’s being planned on the takeaway front and where these projects stand.