My education has just gone 1 step further. Yet I still don’t know exactly how to fit the data together. South Central storage is filling at possibly the worst time imaginable.
We know LNG is going to increase and we know production can increase, but what about power burn? I’m just spitballin here, but it would seem Texas alone can swing 1Bcf/d from day to day in power burn. It’s been hot lately, and South Central storage is still building. What’s going to happen if things cool off in this region? Storage is still too close for comfort for me, and now I learn power burn starts letting up this time of year. South Central is about to start building quickly again, LNG is either going to just save storage or just not. haha It’s always something.
I know I’m dwelling on this, but I’m ok with that 😛 I see south central testing its ability to reach max capacity. I did hear some news of Waha pricing spiking. I don’t know if this will deter storage facilities; I would imagine current pricing is still a deal compared to what is to be expected this time next year when production may actually be struggling to keep up. No doubt, there is a bigger swing to be on the long side soon enough, but I want there to be no doubt for myself first. I’ll stick to what I’m holding for now.
UNL – 50% of funds in from $7.4
BOIL covered puts.
I hope everyone has a weekend to relax. I know I’m stressed the hell out over this COVID mess. I keep reading of positive cases and have heard of a few deaths (of family members of people I know). I know people who’ve had it now. It’s the unknown that is stressful. I need to relax; I hope we all get a chance to do that. Good Luck