Friday, June 3, 2016

The Dog That Didn't Bark -- June 3, 2016; A Dumpster Fire Any Way You Look At It -- CNBC

Updates

June 4, 2016: CNBC calls it a "crummy" report and goes even farther:
Friday's May jobs report was a dumpster fire any way you look at it. And it cannot have made Hillary Clinton 's Brooklyn, New York, campaign staff very happy.
June 4, 2016: the May jobs report in 12 graphs

June 4, 2016: the WSJ has an op-ed on the reason for the stunning, shocking (their words, not mine) jobs report. It has to do with Dodd-Frank, state licensing, and regulatory environment -- but all of that has been in place for years and in some cases, decades. The op-ed does nothing to explain the complete collapse of the job market. Again, no mention of ObamaCare.
 
Original Post
 
This is interesting. I haven't seen anyone else report on it.

What is the most incredulous news story report today?

No one took credit for the unemployment rating dropping from 5.0% to 4.7%. Not only that, no one even discussed it. If anyone discussed the jobs report today, they were using words like "stunning" and "shocking" to describe the stunningly, shockingly low number of jobs created last month (and then blaming the lousy report on Verizon union members. LOL.).

But they weren't discussing the stunningly, shockingly drop in the unemployment rate. In times of economic uncertainty, a flat, or unchanging unemployment rate is good news. A rise of 0.1% is hardly noteworthy. A drop of 0.1% is huge. It demands a huge headline. It's the news story of the day.

Today, the unemployment rate drops a stunning, shocking 0.3% -- from 5% to 4.7% -- and not a single peep from the Obama administration. There's no indication the Labor Secretary even mentioned that at 4.7% unemployment, most economists would consider the US at "full employment." In fact, 4.7% is quite remarkable.

Strange, isn't it?

We'll get back to it later. But for now, I'm headed to bed.

Everybody Knows, Leonard Cohen

Three (3) New Permits -- June 3, 2016

Active rigs:


6/3/201606/03/201506/03/201406/03/201306/03/2012
Active Rigs2581190189215


Three (3) new permits --
  • Operator: Crescent Point Energy
  • Field: Ellisville (Williams)
  • Comments: all on the same pad; these wells are spaced 25 feet from each other (all three are 286 feet from the south line of section 7-158-99; one Lowe is 1,424 feet from the east line; Amelia Grace is 1,449 feet from the east line; and, the second Lowe well will be 1,474 feet from the east line
Five permit renewals:
  • CLR (4), two Olympia permits, two Charleston permits; all in Williams County
  • XTO, a Janice permit in Williams County
Cornerstone canceled one permit, a Huff permit in Burke County

Operator Transfer, from Oasis to Samson Oil & Gas:
  • about 74 wells
  • counties: Williams, McKenzie, Divide (the vast majority appear to be in McKenzie County; only one in Divide County; about 13 Williams County wells)
  • looking at about 15 of these wells, it appears all of them are Madison wells; except for a few early wells, they are all horizontal wells; the vast majority seem to be inactive or in some phase of abandonment
  • earliest permit: #04391 
    • 04391, 63, Samson Oil & Gas, Kittelson A-1, East Goose Lake, a Madison well, t4/68; cum 338K 4/16; producing about 400 bbls/month;
  • most recent permit: #16397 
    • 16397, 118/IA, Samson Oil & Gas, Snuffy Stirnweiss 1-33H, Foreman Butte, a Madison well, t2/06; cum 56K last produced 7/15, except for one bbl over one day in 12/15;

Train Carrying Crude Oil Derails In Oregon; No Injuries -- June 3, 2016

http://www.oregonlive.com/pacific-northwest-news/index.ssf/2016/06/oil_train_derails_near_hood_ri.html#incart_email

http://www.kptv.com/story/32134839/emergency-crews-respond-to-train-derailment-in-gorge-school-evacuated#.V1HwCTWI2YI.email

Holy Octane! Did You All See The US Gasoline-Supplied For March Data -- It's Quite Incredible -- Considering 10,000 EVs Are Being Sold Every Month -- June 3, 2016

Updates

June 4, 2016: Don points out and he's completely correct. This huge increase month-over-month, year-over-year cannot simply be due to American drivers only. This happened so fast, and by such a wide margin, something else has to account for some of this growth. Part of the month-over-month growth was noted below (a 29-day February vs a 31-day March) but still the jump was unprecedented.

John Kemp, London-based Reuters analyst has noted that some gasoline produced in the US is exported, mostly to Europe. That may explain some of the jump in US gasoline production. A couple other data points:
  • recently all eight French refineries were shut down in France
  • French refineries gradually coming back on line, but things are not back to normal
  • Venezuela may not be refining a whole lot of gasoline; they cannot pay for the light oil that they need to mix with their heavy oil before refining; see this post from this week;
Obviously the French work stoppage in late May/early June did not affect March gasoline production in the US, but ...

If there is any validity to Don's suggestion, we should see some huge jumps in gasoline production in the US over the next few months. So we'll see. It will be interesting to see if gasoline production in May/June (2016) increases and if any analyst suggests the shutdown of all French refineries had anything to do with it.

By the way, the unions shutting down French refineries was probably pretty stupid: there is no shortage of gasoline globally, so once the logistics was sorted out, France would have adequate sources of gasoline.

US refinery capacity is running at about 89% ... which makes Prince Salman's plan to build more refineries .... should we say, problematic?
    Original Post
     
    To the best of my knowledge, the March "number" is a record for March. Look at that number: 291,373,000 bbls or 291 million bbls/month of March or 9.4 million bopd in March.

    For newbies, March is NOT the beginning of the driving season in the US.

    Memorial Day is.

    But back to the "number."

    Scroll up that list for all the months of March from 1990 to this March, 2016. No previous month of March even comes close to 291,373. The closest was 284,506, back in 2007, just before the US economy went over the recession cliff.

    August is the "big" month for gasoline demand in the US. How does the March, 2016, "number" compare with previous months of August? I'm glad you asked. With only a few exceptions, the "number" for March, 2016, actually exceeded the gasoline demand for the busies travel month in the US.

    Let's see, on a percentage basis, month-over-month: 291,373 - 266,981 --> slightly more than a 9% increase. Whooo-hoooo. Of course, that's an unfair comparison because March has 31 days; February had 29 days. On a month-over-month, daily basis: 9,399 - 9,206 --> only 2%.

    Let's see, on a percentage basis, year-over-year: 291,373 - 280,708 --> just less than a 4% increase.

    Kinder Morgan LNG-Export Terminal Moves Forward -- June 3, 2016

    Updates

    March 5, 2017: update here. KMI retains its original 51%. "Flips" 49% stake it bought from Shell in 2015 to ELC. Project now estimated to cost $1.3 billion.

    Original Post 

    From Houston Bizjournal:
    Houston-based Kinder Morgan Inc. announced June 2 that it has received approval from the the Federal Energy Regulatory Commission for its new $2 billion liquefied natural gas project in Georgia.
    The development, dubbed the Elba Liquefaction Project, will be at Kinder Morgan's existing Elba Island LNG Terminal near Savannah, Georgia. It is expected to have a total capacity of 2.5 million tonnes per year of LNG for export, which is equivalent to about 350 million cubic feet per day of natural gas.

    The Next Big Thing: Uber, Lyft -- June 3, 2016

    Obviously Uber, Lyft were "the next big thing" some years ago. But when Wal-Mart gets involved, one knows things have changed:
    Wal-Mart Stores Inc. says it will be testing its grocery delivery service with ride-hailing companies Uber and Lyft in the next two weeks in Denver and Phoenix.
    That's in addition to a quiet pilot program that started in March with Deliv for its Sam's Club customers that involves delivery of general merchandise and grocery for business members in Miami.
    The move is the latest step in the retailer's efforts to better compete with Amazon, which is delivering groceries directly to shoppers' homes in several markets.
    Is pizza delivery next? My hunch: yes.

    ***************************
    Auto Sales

    GM sales in China surge.
    GM and its joint ventures in China reported a 16.9% year-over-year increase in retail sales in May 2016, taking the figure to 295,282 vehicles.
    The improved performance was driven by strong demand for SUVs, MPVs and luxury vehicles, along with notable demand for passenger car models like Buick Excelle GT. The Buick, Cadillac and Baojun brands, and SUV lineup also recorded all-time high deliveries in May.
    ***************************
    US EV Sales
    EV sales link here.

    Tesla Model S was #4, up to 1,200 in May (from 800 in April)
    • #1: Chevrolet Volt: 1,901 (down from 1,983 in April)
    • #2: Tesla Model X: at 1,600, doubled from its 850 in April
    • #3: Ford Fusion Energi: up slightly from 1,331, to 1,453
    After that, every EV model is below 1,000.
    • Nissan Leaf crept up a bit, to 979 from 787
    These showed decreases:
    • Ford C-Max Energi
    • BMW i3
    • BMW XS
    • Chevrolet Spark EV
    • VW e-Golf
    In fact, with minor exceptions, all makes/models showed declines.

    Bottom line:
    • April: 10,557
    • May: 11,423
    Mercedes Benz vs Autobahn, Janis Joplin, Kraftwerk, Matt Pop
     
    So, the 30-second, elevator speech: about 10,000 EVs are sold monthly in the US.

    Flooding In Paris -- June 3, 2016

    Link here:
    Some are saying it’s the city’s worst flood in decades. Fran├žois Duquesne, head of Vigicrues, the agency which monitors water levels in France, said: “The Seine is still rising but we are far from the 8.5 metres recorded in 1910.
    We should see a rise to a peak of around 5.6 metres overnight.” The flooding started after heavy rain led the River Seine to rise above its “preliminary” alert level of 5 metres on Thursday (local time). The Seine floods the French capital on average once a century.
    The last time it occurred was in 1910 when large areas of the capital were flooded for 45 days. Local weather forecasts suggest that the weather should improve over the weekend.
    *****************************
    A Note for the Granddaughters

    We were assigned overseas from 1983 to 1996. Paris was our second home, it seemed. We visited Paris so often, our two daughters finally put their collective feet down (all four of them) and said they didn't want to see Paris any more.

    While overseas, our younger daughter -- starting at age six months -- and I began a Lego collection that is .... well ... pretty awesome.

    Today, our younger daughter sent me this link on "ten most wildly expensive" Lego sets. We have two of them (and several more that did not make the top 10 but should have).  We would have had four, but I refused to get the Taj Mahal (my mistake?), and I really missed an opportunity of a lifetime when I did not buy the Star Wars Millenium Falcon, but I didn't want to start yet another collection.

    Look at what these $199 sets now sell for on eBay or Amazon.

    My personal favorite: the Maersk Line Container Ship.

    Note:
    From the “Wait, what?” department, LEGO has just re-released the 2004 set 10152 Maersk Sealand Container Ship as the 2011 set 10155 Maersk Container Ship.icon
    The new version has two more pieces and the sticker/decal says “Maersk Line” instead of “Maersk Sealand,” but the set appears to be otherwise identical.
    10155 Maersk Container Shipicon costs $120 (compare to the original at $75 seven years ago) and is available from the LEGO Shop online now.
    By the way, for those who care, I hit my mid-life crisis on April 23, 2016, by starting a new collection in a completely new area, a completely new genre, as it were. No toys this time. Not cars. Not books. It will take 10 - 12 weeks for deliveries (note: plural) to begin. Once the deliveries begin, I will post some photos. 

    For Anyone Paying Attention -- June 3, 2016

    Updates

    June 4, 2016: the dog that didn't bark

    Later, 3:36 p.m. Central Time: even the LA Times called the jobs report today "shocking" -- the headline: Five things we learned from the shocking jobs report today. Here they are:
    • it all started with George W. Bush
    • Obama is doing his best to turn this around
    • Hillary will get the job done
    • Trump will make things even worse
    • the California beaches will be really, really busy this weekend
    The lede:
    Anemic job growth of just 38,000 in May -- the worst in more than five years -- shocked analysts, triggered warnings about the state of the economy and most likely derailed a Federal Reserve interest rate hike many had expected was coming this month.
    But economists cautioned not to overreact to a single bad jobs report – even the stunningly bad one released by the Labor Department on Friday.
    “It’s kind of a yellow flag, I wouldn't call it a red flag,” said Stuart Hoffman, chief economist at PNC Financial Services.
    “It’s not time to panic,” he said. “These numbers are quite disappointing but not decisively recessionary or a sign that the economy is down and out.”
    Still, the weak numbers bolster Republican arguments that President Obama and his fellow Democrats haven’t been able to fully revive the economy after the Great Recession.
    And what did the LA Times blame the shocking report on: the Verizon strike (which is over).

    Then they blamed it on global warming, or as they put it, the "mild weather":
    Mild winter weather in much of the country could have led to earlier-than-usual hiring by construction companies, which pushed down May hiring. In February and March, the industry added 50,000 net new jobs, compared with just 20,000 for the same months the year before.
    I can't make this stuff up. [The LA Times conveniently forgot to mention that job growth in March and April was also pathetic -- just not as bad as the May numbers.]

    Later, 3:32 p.m. Central Time: I see that four hours ago Yahoo!Finance had this story -- "everyone" was wrong on today's job report:
    We went searching for an economist who came close to predicting the surprisingly low number of jobs created in May – 38,000. We couldn’t find one.
    Bloomberg surveyed 81 economists on their predictions for the nonfarm payroll number for May, the closely watched figure that represents the net number of new jobs. The average prediction was for 161,000 new jobs, which turned out to be 123,000 too high.
    The forecasting department at National Bank of Canada came closest, predicting 90,000 new jobs. Next was University College, Dublin, at 92,000, followed by German online banking firm Berliner Sparkasse, at 100,000. The top three guesses came not from renowned Wall Street banks but from non-US organizations.
    The difficulty of forecasting becomes apparent when something unusual happens, which clearly seems to have happened in the labor market in May. Everybody was aware of a big strike at Verizon that was expected to pull down the overall number by 30,000 or so. Something more than that was obviously going on, and what, exactly, may not be apparent for months. If ever. [Subtle hint: OBAMACARE.]
    Later, 3:25 p.m. Central Time: finally. Yahoo!Finance says this was posted two hours ago, so that would make it about 1:25 p.m. Central Time. Finally someone woke up. My hunch is that the writer knew the story at 8:30 a.m. this morning when the numbers came out, but the spinmeister puppeteers had to figure out how to release the story, and then "when" to release the story. Finally, near the end of the trading day Yahoo!Finance uses the word "shocking" to describe the jobs report AND notes that analysts missed it by a mile, although they did not say exactly that. By the way, this was part of the first comment (obviously this guy is paying attention):
    For a long time there's been a metric of 150K-180K jobs per month needed in order to keep up with the growth of the population.
    Yet here we are with yet another month that falls well short of that but the unemployment number goes down??? They just keep subtracting people from the workforce to make their numbers work.
    And yet again the [mainstream] media doesn't say a word.
    Later, 10:00 a.m. Central Time: people dropping out of the work force, but US factory orders surge; up 1.9%, best in six months. 

    Later, 9:31 a.m. Central Time: wow, from "El-Erian." And this is an expert? No analysis whatsoever. His only conclusion: confusing. The spinmeisters are unable to really say how bad this report was. This was an incredibly bad report, and as the hours tick by, people are going to realize how awful this report was. Confusing? I don't think so. The "jobs numbers" have simply caught up with reality. O.B.A.M.A.C.A.R.E.H.I.L.L.A.R.Y.W.A.R.O.N.F.R.A.C.K.I.N.G.

    Later, 8:42 a.m. Central Time: as the numbers begin to sink in, the market begins to sink. The market was positive/green prior to the opening. The jobs report was released at 7:30 a.m. Central Time, and immediately, futures turned negative/red -- slowly at first, but now, nearly a triple-digit fall. By 11:00 a.m. the numbers will be "old" news, the spinmeisters will "correct" things, and the market will get back to whatever it was going to do before the jobs report even came out.
     
    Original Post
     
    It appears Zero Hedge has the best "first analysis":
    If anyone was "worried" about the Verizon strike taking away 35,000 jobs from the pro forma whisper number of 200,000 with consensus expecting 160,000 jobs, or worried about a rate hike by the Fed any time soon, you can sweep all worries away: moments ago the BLS reported that in May a paltry 38,000 jobs were added, a plunge from last month's downward revised 123K (was 160K).
    The number was the lowest since September 2010!
    The household survey was just as bad, with only 26,000 jobs added in May, bringing the total to 151,030K. This happened as the number of unemployed tumbled from 7,920K to 7,436K driven by a massive surge in people not in the labor force which soared to a record 94.7 million, a monthly increase of over 600,000 workers.   
    As expected Verizon subtracted 35,000 workers however this was more than offset by a 36,000 drop in goods producing workers. Worse, there was no offsetting increase in temp workers (something we caution recently), and no growth in trade and transportation services.
    What is striking is that while the deteriorationg in mining employment continued (-10,000), and since reaching a peak in September 2014, mining has lost 207,000 jobs, for the first time the BLS acknowledged that the tech bubble has also burst, reporting that employment in information declined by 34,000 in May.
    The change in total nonfarm payroll employment for March was revised from +208,000  to +186,000, and the change for April was revised from +160,000 to +123,000. With these revisions, employment gains in March and April combined were 59,000 less  than previously reported. Over the past 3 months, job gains have averaged 116,000  per month.
    I think the biggest story -- and what needs the most explanation -- is the drop in tech hiring.

    Record 94.7 million Americans not in labor force:
    • incredible safety net (disability insurance, unemployment insurance, social security)
    • tectonic shifts in tech
    • ObamaCare
    • $15/hour minimum wage
    • reports from California: "impossible" for small companies to operate
    • trickle down estates: the "best generation" -- those who were 16 years old to 40 years old during WWII -- now leaving their estates to their children and grandchildren; that generation was the first US generation to leave money to their children

    ... And The Jobs Report ... June 3, 2016 -- Holy Mackeral -- 38,000! You Have Got To Be Kidding.....

    Updates

    June 15, 2016: how bad was the jobs number? It was bad. For quite some time now, it was a foregone conclusion that the Fed would raise rates at the June meeting, and would continue to increase them (albeit, slowly) over the rest of the year. But today, the Fed "punted" (their word, not mine) and did not raise rates, and suggested they are now re-evaluating whole plan to raise rates this year because of the tenuous job situation. Yahoo!News reports:
    The Federal Reserve pushed back its plans to raise its benchmark short-term interest rate, a widely expected move following a series of mixed US economic reports.
    After a two-day policy meeting, the Federal Open Market Committee unanimously voted to hold the federal funds rate between 0.25% and 0.50%, citing weakness in recent employment data.
    “[T]he pace of improvement in the labor market has slowed while growth in economic activity appears to have picked up. Although the unemployment rate has declined, job gains have diminished,” the central bank wrote in its statement.
    For the second time, the Fed withheld mention of global economic risks and provided no assessment of the balance of risks, implying that officials are still keeping their options open for a rate hike this summer, but uncertainty and headwinds abroad could arise.
    The cautious stance comes after an unexpectedly weak payrolls report in which the US economy added only 38,000 jobs in May, the lowest level in six years. Other employment data has been varied. 
    The hiring rate slowed in April, but jobless claims are near record lows. Fed officials have said that they are waiting for more data before placing weight on the May employment numbers.
    Original Post
     
    Forecast: 154,000 jobs added.

    Remember: these were the "magic numbers" before the Obama administration:
    First time claims, unemployment benefits: 400,000 (> 400,000: economic stagnation)
    New jobs: 200,000 (< 200,000 new jobs: economic stagnation)
    Since then, Reuters, Bloomberg, others have revised them "down" to fit the Obama economy.

    So, today's number: 38,000.

    From Business Insider:
    The US economy added 38,000 jobs in May, a lot fewer than expected, while the unemployment rate fell to 4.7%.
    Economists had forecast that nonfarm payrolls grew by 160,000 in May — the same pace as April — while the unemployment rate slipped to 4.9% from 5% according to Bloomberg.
    And it gets worse. The March number was revised significantly downward:
    The pace of month-on-month job gains has slowed since October. The nonfarm payroll print for March (sic) was revised to 123,000 from 160,000.
    But then the spin:
    While this suggests employers are scaling back hiring, it's worth considering that the low unemployment rate means there are fewer workers willing and able to hire. 
    "Willing" workers -- workers dropping out of the workforce.

    And, then, as predicted, the Verizon excuse:
    Additionally, the nearly 40,000 Verizon workers who were on strike during the reference week of the jobs report were expected to drag the headline, although there was no consensus on the extent of the dent.  
    ******************************
    Jobs and Tea Leaves

    I see "hiring now" signs all over the DFW area.

    Starting hourly wages for entry-level fast food type jobs at $13 - $18 in the local area.

    Tech companies screaming to allow more immigration.

    Regardless of the reason, regardless of the accuracy, the fact is that employers are facing a 4.7% unemployment number -- the lowest since 2007. 

    Verizon strike didn't last long.

    The news articles are focused on the 4.7% unemployment rate -- in the headlines -- including the WSJ and yet hiring slowed "drastically" -- their words, not mine -- in May -- to 38,000.

    Again, how did analysts missit by so much? Forecast: 160,000. Actual: 38,0000.

    ********************************
    The Graph

    The three "up" arrows: the month of May for the past three years.

    Look how incredibly low the bar is for the latest reporting period. One would almost have to say there was a huge "fat finger" error. There is simply no way the country only added 38,000 jobs in May.

    Look at the trend since November, 2015. The trend line has the same slope as the glide path of the F-16 that crashed in Colorado yesterday.

    And then look at the magic number: 200,000 jobs -- less than 200,000 jobs correlates with economic stagnation.

    With energy so incredibly cheap, employers should be expanding, hiring.

    In no article is the 800-pound gorilla mentioned: ObamaCare.

    I didn't even see much written about the oil / gas sector depression.

    The big "disconnect": no hiring and an unemployment rate of 4.7% -- the lowest since 2007. One starts to think that the unemployment number is entirely irrelevant.

    It will be interesting to see some real good soul-searching reporting / analysis -- we won't see it in mainstream media. I'm hoping Mark Perry or ZeroHedge will pick up on it.

    It appears Zero Hedge has the best "first analysis":
    If anyone was "worried" about the Verizon strike taking away 35,000 jobs from the pro forma whisper number of 200,000 with consensus expecting 160,000 jobs, or worried about a rate hike by the Fed any time soon, you can sweep all worries away: moments ago the BLS reported that in May a paltry 38,000 jobs were added, a plunge from last month's downward revised 123K (was 160K). The number was the lowest since September 2010!
    The household survey was just as bad, with only 26,000 jobs added in May, bringing the total to 151,030K. This happened as the number of unemployed tumbled from 7,920K to 7,436K driven by a massive surge in people not in the labor force which soared to a record 94,7 million, a monthly increase of over 600,000 workers.   
    As expected Verizon subtracted 35,000 workers however this was more than offset by a 36,000 drop in goods producing workers. Worse, there was no offsetting increase in temp workers (something we caution recently), and no growth in trade and transportation services.
    What is striking is that while the deteriorationg in mining employment continued (-10,000), and since reaching a peak in September 2014, mining has lost 207,000 jobs, for the first time the BLS acknowledged that the tech bubble has also burst, reporting that employment in information declined by 34,000 in May.
    The change in total nonfarm payroll employment for March was revised from +208,000  to +186,000, and the change for April was revised from +160,000 to +123,000. With these revisions, employment gains in March and April combined were 59,000 less  than previously reported. Over the past 3 months, job gains have averaged 116,000  per month.

    Friday, June 3, 2016

    Dakota Access Pipeline back on track? Des Moines Register is reporting: maybe possibly perhaps they begin laying the pipeline in Iowa. Newest obstacle: US Army Corps of Engineers.

    What glut? XOM may invest $10 billion in Argentina's Vaca Muerta shale.

    Scotland bans fracking.

    Gasoline demand: regular readers know my fascination with the 10 million bopd threshold. From a Bloomberg article this morning:
    Looking at that demand side of the equation helps explain what's going on in oil markets now. U.S. implied gasoline demand is running well ahead of the levels it's been at in recent years, and we're still only about a third of the way through the summer driving season that runs from April to September.
    EV sales numbers out: link here.

    Friday jobs report: yet to be released -- but remember this -- if it's a lousy report, the spinmeisters will blame it on the Verizon strike. And right on cue, from The New York Times:
    Whatever figure the Labor Department reports will probably seem weaker than it is in reality because more than 35,000 Verizon workers were on strike throughout May. (They returned to work this week.) Although Verizon hired some temporary replacements, the total would not offset the number who walked out. Goldman Sachs researchers have said they expect the strike to show up in two categories in the payroll report: specialty trade contractors, a component of the broader construction, and telecommunications, part of the information services.
    Active rigs:


    6/3/201606/03/201506/03/201406/03/201306/03/2012
    Active Rigs2581190189215

    RBN Energy: risks and opportunities of northeast natural gas pipeline expansions.

    GE / Statoil partner up: from SeekingAlpha --
    • GE Oil & Gas secures a major deal with Statoil to supply surface wellhead and christmas tree equipment for the giant John Sverdrup field in the North Sea; the value of the agreement is not disclosed
    • Under the new multi-year agreement, GE will manufacture, deliver and install its standardized surface wellhead and christmas tree systems at multiple wells that make up part of the field.
    • GE, which has collaborated with STO on previous technology projects. says the latest deal opens opportunities for the Norwegian company to use GE's digital solutions to drive higher productivity and create "smarter” wells.
    • Johan Sverdrup is one of the five biggest oil fields on the Norwegian continental shelf, with expected resources of 1.7B-3B boe.