Bloomberg is reporting:
- nationwide, 5,946 DUCs at the end of May, 2017 -- so, let's call it 6,000 DUCs nationwide and around 1,000 in the Bakken
- this sets a three-year record (hard to believe that it's not an all-time record)
- the Permian: in May -- operators drill 125 more wells than they would complete
- the Permian: in May -- nearly 100,000 bopd in DUCs
- breakeven price in the Permian as low as $35
WTI closed at lowest level since November, 2016, and we're approaching the middle of the US driving season.
First World Problems
I just got back from mailing two small, but relatively heavy, packages to family members in Portland, Oregon. Least expensive option, $25 for one and $12 for the other package. Remember those numbers.
Upon arriving home, I checked the WSJ on-line. This headline caught my attention: UPS to Add Delivery Surcharges for Black Friday, Christmas Orders. Delivery company seeks to recoup increase in hiring and reserving extra vehicles during busiest period.
I gasped -- UPS and FedEx are already more expensive than the US Postal Service. I could only imagine how "bad" the surcharge would be.
Hold your breath.
Okay, back to other first world problems. LOL.