Pioneer's Sheffield and Parsley Energy (Sheffield's son) want the TRRC to Officially mandate production cuts so they can void contracts with Enterprise Products LLC.

[BLA + 1,666]

Shale producers Pioneer Resources and Parsley Energy export most of their oil production.  They were able to garner a premium price on their oil due to pricing based on the higher priced Brent benchmark as opposed to the lower WTO benchmark.

Now with the corona virus affect the (1) tanker lease rates are up 600% and the (2) competition exporting from the likes of the Saudis who will undercut any and all prices, with 75 owned or leased tanker fleet and a take no prisoners attitude to move their stockpiled oil .  .  .   Pioneer and Parsley want to void oil service company, pipeline company and export terminal company contracts.

Enterprise Products LLC spent tens of $Billions to build the pipelines, storage and export terminals based on long-term contractual commitments from companies like SHEFFIELD AND SONS.

Get real.  Let's start to get the U.S. economy going again and just ignore the Sheffields, Saudis and OPEC.  That's how you get the demand to return. 

The quarantine worked.  It stopped our hospitals from crashing.  The cuts don't work and Saudis will never cut exports so the only option to work will be to get the economies started.  Just start , it's a long road to recovery. 

 

 

Edited April 15, 2020 by BLA

[Ward Smith + 6,615]

This might have been better in the proration thread. Interesting take on some inside gossip. I'd have thought Enterprise would have arranged shipping. Usually the midstream company takes over, but I guess it depends on the arrangement.  

[BLA + 1,666]

5 hours ago, Ward Smith said:

This might have been better in the proration thread. Interesting take on some inside gossip. I'd have thought Enterprise would have arranged shipping. Usually the midstream company takes over, but I guess it depends on the arrangement.  

Enterprise has pipelines and export terminals.  Pioneer want to cancel or force renegotiation on service companies, pipeline companies and export terminal companies.  

Have not seen the export numbers yet however I'm sure they are going down from the 3.5 mm day of a month ago.