Title : Pipeline: The New Reality In The US -- Americans Don't Like Pipelines -- July 25, 2018
link : Pipeline: The New Reality In The US -- Americans Don't Like Pipelines -- July 25, 2018
Pipeline: The New Reality In The US -- Americans Don't Like Pipelines -- July 25, 2018
Reuters via Yahoo!Finance has this story: OXY -- Occidental Petroleum may be looking to sell its pipeline assets -- ostensibly to raise cash for E & P but reading between the lines, operators are simply getting tired of the whole business. I've been blogging about the Keystone XL since at least 2012 when it became clear that President Obama intended to kill the project. Since then, update after update after update. Today, we get news that the Nebraska Supreme Court says it will "expedite" oral arguments. Charles Dickens wrote about the British legal quagmire where court cases dragged on for generations. As Pogo said, we've met the enemy and the enemy is us. Whether Pogo was the first to note that is debatable; probably not.But I digress.
From the linked article:
Occidental's decision to shed the assets is the latest example of an oil company balking at the capital expenditure required to maintain U.S. pipelines, which have been plagued by bottlenecks and require construction of new networks.
Hess Corp and Oasis Petroleum Inc are among the companies that have sold or spun off pipelines in the past year, looking to take advantage of high valuations for these assets, which have been buoyed by the capacity constrains.
Occidental's midstream assets include a major U.S. crude pipeline, a stake in a gas pipeline in the Middle East, a crude export terminal in Texas, and the Centurion Pipeline, a 2,900 mile line carrying crude from the Permian Basin of West Texas and New Mexico to Cushing, Oklahoma.
A year ago, Occidental tried to find a buyer for its 50 percent stake in its Ingleside Energy Center, a crude oil storage and export terminal in Corpus Christi, Texas. That sale process was not completed, and Occidental is including the facility in its package of midstream assets.
Much more at the link.
Warren Buffett likes:
- energy
- sectors that require huge CAPEX -- huge tax advantages
- industries with huge moats
- to wait for the right moment to buy
Berkshire Hathaway:
- market cap: almost $500 billion
- income from continuing operations: $45 billion
- total cash: $102 billion
- total debt: $99 billion
- how much does OXY want for its premier pipeline assets? $5 billion
- shoot -- the Centurion Pipeline -- 30-second elevator speech -- at a million dollars a mile, that pipeline alone is worth $2.9 billion; LOL
- perspective: Trudeau bought the current Trans Mountain Pipeline assets for $4.7 billion; it will cost an estimated $7.4 billion more to complete the expansion project
Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or think you may have read here.
Disclaimer: in a long note like this, there are bound to be factual and typographical errors. If this is important to you, go to the source. Also, I make a lot of simple arithmetic errors.
Thus Article Pipeline: The New Reality In The US -- Americans Don't Like Pipelines -- July 25, 2018
That's an article Pipeline: The New Reality In The US -- Americans Don't Like Pipelines -- July 25, 2018 This time, hopefully can give benefits to all of you. well, see you in posting other articles.
You are now reading the article Pipeline: The New Reality In The US -- Americans Don't Like Pipelines -- July 25, 2018 with the link address https://mylivemyidea.blogspot.com/2018/07/pipeline-new-reality-in-us-americans.html
0 Response to "Pipeline: The New Reality In The US -- Americans Don't Like Pipelines -- July 25, 2018"
Post a Comment