Wednesday, February 21, 2018

API Reports A Million-Barrel Draw In Crude Oil Inventories; More Growth In The Bakken -- February 21, 2018

Because of the holiday on Monday, the API data will be released today, instead of Tuesday. That data will come out later this afternoon. API forecasts a 1.300-million-bbl build. Later: here is the actual number: interesting -- not a build at all, but a decrease - API has the weekly crude oil inventory number dropping 0.907 million; in other words, down about a million bbls.

Later: WTI: $61.10 just as the API number hit the internet, 4:30 ET. Five minutes later, $61.12 -- in other words, no impact.

Likewise, the EIA weekly petroleum report that usually comes out Wednesday will be delayed a day, to be released Thursday.

I use the EIA data for calculating "re-balancing" time frame.

Update On Andeavor's Belfield Logistics Hub

I'm not sure if this has been previously reported or if this is new but related to the previously reported story regarding the proposed Andeavor natural gas logistics hub near Belfield, North Dakota. I guess parts of this have been previously reported, but this fills in a lot of the details.

From The Bismarck Tribune today, a couple of stories in one article.

First, Andeavor, a new pipeline:
  • 44 miles long -- McKenzie, Billings, and Stark counties (the original article regarding the Belfield hub did say the company would connect its new Belfield hub with a location in McKenzie County
  • at Belfield, the mixed natural gas liquids would be separated into products such as ethane, propane, butane, and natural gasoline
  • from Belfield, the products would be transported by pipeline to the Andeavor Fryburg Rail Terminal and loaded unto rail cars
  • North Dakota produces more than 400,000 bbls of NGLs daily
  • this NGL production will more than double by the 2030s -- ranging from from 800,000 to 1 million bbls daily
  • memo to self: memo to Art Berman
  • the entire project:
    • three pipeline segments that total 44 miles
    • conversion of 42 miles of Andeavor BakkenLink crude oil pipeline into NGL service
    • would carry NGLs from the Oasis Wild Basin natural gas processing plant that's being expanded near Watford City (I believe when the Oasis Wild Basin NG processing plant comes on line it will be the biggest such plant in North Dakota -- although it may not hold that title for long)
    • pipeline would initially carry 15,000 bbls/day; could be expanded to 34,000 bbls/day
    • total project cost estimate: $150 million
The second story: ONEOK (previously posted on the blog) --
  • has proposed to have the 900-mile Elk Creek Pipeline transport NGLs from Bakken to Kansas
  • that project originates in Sidney, MT, but will connect to existing pipelines in northwest North Dakota
  • ONEOK would convert an existing 45-mile NG gathering pipeline into a NGL pipeline in McKenzie and Williams counties
Meanwhile, the status of the Keystone XL remains muddled.


Because of the wind, rain, and winter advisory here in north Texas, I had to move the tulips indoors.

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