Thursday, August 2, 2018

Record High Run Rates In US Refining Industry -- August 2, 2018; Another Pipeline Linking The Bakken To The Gulf Coast

Exxon's oil supply and demand forecasts: link here

COP to sell Barnett shale assets, link at SeekingAlpha:
  • to Lime rock Resources -- a very, very familiar name in the Bakken
  • $230 million
  • 9K boepd; 55% natural gas; 45% NGL
  • 114,000 net acres
  • $230 million / 114,000 = $2,000 / acre
Another pipeline linking the Bakken to the gulf coast (and this will have little faux environmental pushback) -- Tallgrass eyes linking Cushing to Louisiana gulf cost, link here:
  • a proposal at this time: Seahorse Pipeline (August 17, 2018, update here)
  • 700-mile pipeline; Cushing to St James, LA, refining complex
  • also a separate export-capable liquids terminal near the mouth of the Mississippi River
  • 30-inch-diameter Seahorse Pipeline 
  • 800,000 bopd
  • similar to Tallgrass' Pony Express Pipeline (PXP)
  • the PXP, 760 miles from Guernsey, WY, to Cushing, went into service into 2014
EPD to expand Seaway Pipeline capacity, link here:
  • from 850,000 bpd to 950,000 bpd
  • by adding drag reducing agents will boost capacity by September, 2018
  • also considering converting natural gas liquids pipeline to increase takeaway capacity in the Permian Basin
Jobless claims, link here:
  • consensus: 218K
  • actual: 218 K
  • increased by 1K week over week; inconsequential
Back to the Bakken

Wells coming off confidential list today:
34058, SI/NC, BR, Kermit 8-8-32MBH, Pershing, no production data,
33117, conf, CLR, Bailey 8-24H, Pershing, 36K first full month; fracked 1/12/18 -3/20/18; lots of sand: 16.5 million gallons of water; 89% water;
24234, SI/NC, Enerplus, Hyena 149-93-30A-31H-TF, Mandaree, FracFocus, has not been fracked; no production data,

Active rigs:

Active Rigs63593474194

RBN Energy: record high run rates in US refining industry.
While crude oil producers in the prolific Permian Basin are living out a Shale Revolution, the Midcontinent region of the U.S. is having a Refining Renaissance. Crude takeaway constraints, mainly due to insufficient pipeline capacity, are driving the prices of crude in Western Canada and West Texas to attractive lows against the WTI NYMEX benchmark for crude at the Cushing, OK, hub. Cheaper oil can contribute to bigger margins for refiners, who are supplying increasing volumes into a retail market that’s selling gasoline at the highest prices in four years. What will happen if the refiners don’t rein in their runs? Today, we’ll explore the implications of record-high run rates in the U.S. refining industry.

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