Morning Thoughts – Oldinvestor

Production is still holding below where I thought production wouldn’t not drop below. Well, I thought this a few months ago. But with everything that has happened I am not surprised. Production is still struggling, and will continue to do so with prices where they are. Drilling is certainly dead, with the exception of a few operators who have plenty of money for a long term, conservative, strategy. LNG is holding out well, almost achieving 8Bcf/d once again. With this combination, prices will run up again soon enough. I am tempted to buy more UNL.

South Central Storage for 2015 to current at RonHenergy.com

As bad a South Central storage sounds to me, this isn’t the first time storage for the region has threatened to fill to max capacity. I’m actually a bit more surprised this region hasn’t expanded storage. From this view of previous years vs 2020, it looks a bit more normal to see such high storage. Either way, South Central storage should continue to influence prices heavily for 4 more weeks.

Positions and P/L as of pre-market 10/5/20

As for me, I’m going to hold where I am. Wait for some confirmation that prices want to hold, fundamentals want to hold. I will miss out on the best pricing, but will also not be buying too soon. As for SLB, I think they just need a little more time to stabilize. Good Luck

Oldinvestor