Must Read Update On Bakken Takeaway -- RBN Energy; July 2, 2014

Active rigs:

	7/2/2014	07/02/2013	07/02/2012	07/02/2011	07/02/2010
Active Rigs	190	192	215	172	132

RBN Energy: North Dakota Bakken -- shift away from CBR and back to pipelines (these links will break over time).

The latest North Dakota Pipeline Authority (NDPA) data for April 2014 shows crude production in that State finally crossing the 1 MMb/d mark. That threshold was finally crossed after producers recovered from a harsh winter that shut in production and constrained new drilling. But while production continues to grow and is expected to reach 1.7 MMb/d by the end of 2019, producer crude takeaway preferences appear to be changing. NDPA data shows an 8 percent reduction in rail shipments out of North Dakota since November 2013. Today we investigate the shift away from rail transportation.

The Wall Street Journal

Ukraine forces go on offensive.

Who would have guessed? In the Supreme Court term just ended, Chief Justice John Roberts joined with liberal colleagues to draw some of the court's major decisions toward the middle.

ObamaCare/Trainwreck: Obama's federal health exchange was unable to resolve 2.6 millio of 2.9 million data inconsistencies on insurance applications through December, 2013, because the eligibility system didn't work, according to a new report.  2.6 out of 2.9 is essentially "all" applications -- which validates my number that perhaps as many as 2 million (vs 8 million [their number, not mine] the administration says signed up) actually were enrolled, unfettered, and not confused. Maybe even that's a stretch.

Obama will cut and delay highway funds as of August 1, 2014.

European Court of Human Rights upheld France's ban on full-face veils such as burqas and niqabs. A broad ruling.

US auto sales keep climbing. Are $60,000 automobiles and $75,000 pick-up trucks the "new" homes folks aren't buying?

For all the folks who hate Ma Bell, the fraud that T-Mobile is accused of goes beyond the pale. 

Right-to-work? BMW plans Mexican assembly plant. No ObamaCare rules, no unions, and certainly less expensive energy than German's renewable energy costs. This will be the company's first assembly plant in Mexico.

US stocks set new records. Speaking of records, the extent of Antarctic sea ice set a new record -- now twice in as many weeks for setting new records. The US government spokesman says it is counter-intuitive but, yes, the Antarctic ice extent is setting new records (the government's own words, not mine), but it is due to global warming. Okay, so when folks start telling us sea ice is diminishing, we can't be told it is due to global warming -- unless global warming (and not George Bush) is now to blame for everything. Including earthquakes. (Note the new global warming tag: 2014 - 2015). The hurricane developing off the East Coast will be cited as the first weather event in 2014 to be due to global warming this 2014-2015 year. Count on it.

Overheard on the street:

"The process has already been started and we would expect to have the permit for the Gulf of Mexico terminal in 2005."

The Exxon Mobil executive quoted 10 years ago was spot on in his timing: The company completed permitting for a liquefied natural gas terminal in July 2005. The only problem: it was an import terminal that started running in 2010—just as Exxon was buying XTO Energy to get in on the shale-gas boom that had rendered such facilities largely obsolete.

Exxon is now looking to add export capacity at the same site to relieve the natural-gas glut that keeps domestic prices low. This is just one of many such U.S. proposals, according to a recent report from SNL Energy, adding up to export capacity equivalent to around 41 billion cubic feet per day. That is up from 33 billion a day only in December.
Given that the current level of proposals equates to almost 60% of current U.S. gas consumption, most of these projects will never break ground. Those who succeeded a decade ago—the last time LNG fever gripped the U.S. energy industry, but for imports—must sometimes wish they could say the same.

The Los Angeles Times

LA city unions seek $15 minimum wage. Why don't they just go for $150/hour? That's what I've never understood about this minimum wage thing: why stop at $15/hour?

Private sector adds surprisingly strong 281,000 jobs in June.

It will be interesting to see the Nielsen ratings for World Cup soccer starting today -- now that the US is out. But, wow, that was an exciting game yesterday afternoon; possibly a note to the granddaughters if I have time. Suffice it to say, my wife and I had drinks and appetizer during the first half, and then main course during the second period (we reviewed the menu options during the break). We would have ordered dessert had it gone to penalty kicks. All at my favorite sports restaurant within walking distance of where we live. We went by the restaurant at 2:30 to reserve our table and told them we would be back at 3:00 (we were). I believe we were one of the first to ever walk in and point out the exact table we wanted to reserve (the hostess had to ask the manager if that was okay). It was. JR's Steakhouse and Grill on Texas Highway 121, south of Grapevine. As usual, I pay the full cost of the meal, and my wife leaves the tip in cash; I then match in cash whatever she leaves for the tip. Some days, the tip can be more than half the cost of the meal. My wife's mother was a waitress.