MAE 0.00% 0.0¢ marion energy limited

while you wait mark3

  1. 2,162 Posts.
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    Mark 1 was the "VERY confident on production" post;Mark2 was the "1.5 Trillion of unconventional gas as well as the 1 Trillion of conventional gas"post . Now to Mark 3 - "Marion and Northern California"( intended to while away the time over the next 7 days (?) before we reach P day ). First some key stats on California ("C"). The west coast of the US is not a good gas producer. The best state is C,producing a mere 15% of its needs from within the state. The other 85% comes from Canada (24%),The Rockies (25%) -I dont know which pipeline it gets there through. ,and 36% from the S.W. (through the Socal Hub at the extreme south of Southern California ("SC"). Remember Marions recent statement " Canada (provides) 15% of total US supply..(and is) experiencing material production declines and competing domestic demand pressure" Moving on-C consists of about 38m people-about 16m in NC and 20m in SC. Apply the 36% figure above to SC exclusively (because you cant imagine the Socal gas getting to NC) and any reduction in CANADIAN gas affects NC a lot more,per se,than SC. Now look at what is happenning in the market. El paso ("one of the largest independant gas producers in the US") is building Ruby. Pacific gas and electric has farmed into the $2B cost,taking 25% off El Paso AND agreeing to take 32%,falling to 18%, of the gas from Ruby for 15 years. So El Paso must be one of Marions neighbours and PGE is the intended recipent of a lot of that gas. PGE takes 25% of Ruby to lock things up tight. See next post...
 
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