Jeremy McCrea's questions to VERMILION ENERGY (VET) leadership • Q2 2024
Question
Inquired about the nature of the 15% cost savings in the Montney, the potential for further cost reductions, and the underlying drivers for the recent strength in European natural gas prices.
Answer
The executives clarified that the 15% cost saving was specifically on the completion side and that they anticipate further cost reductions from operational efficiencies and service cost deflation. They attributed the strength in European gas prices to a combination of lower storage levels, increased LNG demand from Asia, and geopolitical risks, expecting prices to remain firm.