Drawdown: weekly drawdown -- 6 million bbls. Compare to 0.9 million bbls previous reporting period, and generally in 1 - 3 million bbl range. At this rate, 6 million bbs/week, US would get to historical levels (350 million bbls) within 30 weeks. WTI after this report? Surges 1.4%, up 63 cents to $46.51. Okay. Whatever.
CAPEX concerns. Lots and lots of hand-wringing over how little money is being spent on off-shore oil E & P. Look at this: shale drillers are outspending the world with $84 billion spree -- Bloomberg.
Futures: Dow 30 down 50 points. For the archives: fallout from FBI Director being fired by President Trump.
US technology: EOG's appliance of science creates a challenge for OPEC -- Bloomberg. The lede:
It is a good idea to be wary when a non-IT company gets rebranded -- either by itself or an exuberant investor -- as a 'tech' company.
However, it is intriguing when a company you don't associate with technology demonstrates a real affinity for it that shows up in good results. Enter EOG Resources Inc.
EOG, which reported results late Monday, remains an oil and gas exploration and production company. Yet on Tuesday morning's call, it took the unusual step of having Sandeep Bhakhri, its chief information and technology officer, provide a potted history of EOG's development of proprietary software tools, dating back to the 1990s.
Overall, cash costs look set to come in at $13 and change per barrel of oil equivalent in 2017 at the mid-point of EOG's guidance , the lowest since 2010.Reported before today's US crude oil drawdown: oil falls as concern grows over battle of OPEC vs US shale. Data points, for Tuesday, May 9, 2017:
- Brent futures fell 61 cents or 1.2%; settled at $48.73
- WTI futures fell 55 cents, also 1.2%; settled at $45.88
- both: lowest since May 4, 2017, and the second lowest since November 29, 2016
- analysts forecast a crude oil inventory drop of 1.8 million bbls (actual was 6 million bbls)
- in March, US crude hit an all-time of over 535.5 million bbls
Time, Inc: earnings worse than forecast
- 1Q17: 18-cent loss vs 15-cent loss forecast
- shares down 6% in pre-market trading; down 10% when market opens