Bakken permits: five new permits today. WPX has four new permits in Squaw Creek oil field; and, Nine Point Energy (formerly Triangle) has one new permit in Painted Woods. WPX has permits for a 4-well Spotted Horn pad in NWNW 26-149-94.
WTI: closed at $67.00. It is interesting that oil did not spike higher -- it is being reported that Venezuela is now importing heavy oil to meed refinery demands. Amazing. Obviously, movers, shakers, speculators, all knew that this would eventually happen -- that, or the refineries would shut down altogether. This is as good a page as any to track "the road to Venezuela."
Petrochemicals: huge story. Saudi Arabia has inked a deal with "start-up" in California to manufacture petrochemicals.
The latest news is a deal between Aramco and a California startup that will allow the Saudi company to use the startup’s oxidative coupling of methane technology in its petrochemicals operations. This technology may sound impressive but it is in fact an alternative to the traditional way of converting gas into ethylene, the main raw material for plastics. This alternative, according to the California company, Siluria, can increase the portion of crude oil converted into chemical feedstocks to 40-80 percent per barrel from the current 15-25 percent, while the rest is made into fuel.
Aramco and Siluria announced their deal in a joint statement without going into financial details. However, the signal is loud and clear: Aramco is doubling down on its refining and plastics bet made amid the latest oil price crisis.No oil shortage due to underinvestment. Remember all those concerns about lack of investment in the oil sector. Not a problem according to BP -- over at oilprice.com.