Wednesday, April 5, 2017

The Energy And Market Page, T+74 -- April 5, 2017

Via twitter: the narrow Brent-Dubai spread makes Atlantic basin oil cheaper for Chinese buyers. 

Gasoline demand: flat, week-over-week. Close to surpassing last year's demand. 

Crude oil stores: up 1.53 million bbls. Probably in-line with what most expected. Oil was up a bit higher earlier this morning but remains positive even after the "number" was released. [I was wrong; the build was unexpected, at least according to Reuters.
Analysts had expected a decrease of 435,000 barrels, and the build reported by the Energy Information Administration came as a double surprise after trade group the American Petroleum Institute (API) reported a 1.8 million-barrel draw late on Tuesday.
I must be missing something. Everything I've read suggested the building would continue.]

Active rigs:

Active Rigs492994192187

RBN Energy: US exploration and production companies budget strong rebound in 2017.
The Diversified E&P peer group has indicated an average 30% increase over 2016 to $19.7 billion, the lowest among the three groups. That average, however, is depressed by a small decrease in investment by ConocoPhillips, the largest E&P in the group.
Excluding ConocoPhillips, the group is forecasting a 48% boost in investment, nearly identical to the plans of the oil-weighted peers.
However, like the large oil-weighted E&Ps with international assets, ConocoPhillips is reallocating capital investment to its Lower 48 plays (Eagle Ford, Bakken, Permian) as it completes large projects, boosting U.S. resource investment in 2017 by about 50% to ~$1.5 billion. Despite the uplift in capital investment, the Diversified E&P peer group’s spending is still 63% below 2014.
The largest allocation of capital outlays (28%) from the peer group will also target the Permian, with 11% in the DJ Basin and in overseas assets and 10% in the SCOOP/STACK. W&T Offshore, Bill Barrett Corp. and WPX Energy are all expected to double capital spending in 2017. Total production is expected to fall 5% this year, though, heavily influenced by asset sales from several companies. WPX Energy is expecting to post the largest gain in production at 28%.
Scott Adams: why I post links to his site regularly

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