Note: I am inappropriately exuberant about the Bakken.
Fitzsimmons: over at SeekingAlpha -- Enbridge has 30% upside.
Wells coming off the confidential list over the weekend, today -- Monday, May 6, 2019: 19 wells for the month; 114 wells for the quarter
- 35200, 2,194, WPX, North Mabel 2-35HS, Mandaree, t3/19; cum --;
- 32511, 220, BR, CCU Mainstreeter 6-1-25MBH, Corral Creek, t3/19; cum --;
- 29135, 1,958, Bruin, Fort Berthold 147-94-1B-12-6H, McGregory Buttes, t11/18; cum 141k 3/19; see production data here;
- 35201, 2,396, WPX, North Mabel 2-35HB, Mandaree, t3/19; cum 19K 27 days;
- 35006, SI/NC, Hess, CA-Ferguson Smith-155-95-3031H-5, Capa, no production daa,
- 34427, 773, Oasis, Martin 5302 11-4 2B, Rosebud, t11/18; cum 91K 3/19;
- 34040, 613, Oasis, Aagik 5298 41-35 6T, Banks, t11/18; cum 100K 3/19;
- 34039, 733, Oasis, Aagvik 5298 41-35 5B, Banks, t11/18; cum 122K 3/19;
- 34037, 1,787, Oasis, Aagvik 5298 41-35 3BX, Banks, t11/18; cum 219K 3/19; over 325K in less than five months;
- 35203, 2,615, WPX, North Mabel 2-35HW, Mandaree, t3/19; cum --;
- 35007, SI/NC, Hess, CA-Ferguson Smith-155-95-3031H-6, Capa, no production data,
RBN Energy: re-contracting issues for older Permian crude pipelines.
Old age and treachery will always beat youth and exuberance. So the saying goes, and it often holds true for midstream projects as well as people. Many times we’ve written that existing pipe in the ground beats new pipeline projects; it’s frequently easier and faster to expand the capacity of an older pipe than it is to build an entirely new pipeline. But eventually, contracts on these old pipelines expire, and as they do, shippers may have new, more attractive options — maybe proposed new pipes offer better connections to gathering systems, the ability to segregate batches of crude oil, and/or access to more desirable markets.
Most importantly, they probably are willing to charge a lower tariff. In the Permian, we’ve seen a slew of new pipelines advance to construction by promising lower and lower shipping costs to move crude from West Texas to the Gulf Coast. Today, we look at how older pipelines’ re-contracting efforts will be affected by their competitors’ lower tariffs and operational advantages.Existing Permian pipelines, from RBN Energy: