I think that's the reason the stock price has not done well lately. I want to buy but, I they need a way to move this new production without it caving their sales price. Oil prices don't look strong going forward. Agree disagree?
CAnadian NAtional Rail is adding tons of oil tank cars to move stuff. Also, IMO was cagey when they were asked about pipelins transport. They said they have plans but can't discuss. I have a Hunch that they can move stuff thru Exxon's pipelines up there? Exxon owns 30% of Kearl and they own 70% of IMO. So it is in Exxon's financial interest to move IMO and Kearl's oil first, over others. In a few years more pipelines will be built, and in interim, CN is taking advantage and buying large numbers of railcars for moving oil. It will be a cash cown for CN. A sideways oil play. IMO is better thought as a 3-5 year investment, and not a trade.
From the looks of things, they either need the pipeline like NOW, or not at all. Kearl product sales , orginally schedule for year end 2012, are now pushed into the 3rd Quarter??? Looks like maybe a huge miss for IMO. that's 100 MB/D they had planned that aint happening. Even XOM feels that kinda miss. And nobody is talking. Weird huh?
read the release. IMO stated that it will take a month or so to ramp up from start date, which was today. THEN! IMO stated that it will take about three months to fill the pipeline from start to finish. What you miss is that IMO stated they HAVE TO FILL THE PIPELINE. get it? IMO HAS A PIPELINE TO FILL! I believe it is exxon's. I think IMO's oil will displace other producers and they will have to fin alternate routes, w/ rail.