Active rigs:
| $58.91 | 12/5/2019 | 12/05/2018 | 12/05/2017 | 12/05/2016 | 12/05/2015 |
|---|---|---|---|---|---|
| Active Rigs | 56 | 62 | 53 | 39 | 64 |
Three wells coming off the confidential list today -- Thursday, December 5, 2019: 16 for the month; 221 for the quarter:
- 36450, SI/NC, WPX, Badger 22-21HIL, Squaw Creek, no production data,
- 35611, 1,596, Hess, RS-Flickertail-156-91-1720H-4, Ross, t6/19; cum 81K 10/19; 23K month;
| Date | Oil Runs | MCF Sold |
|---|---|---|
| 10-2019 | 14355 | 11799 |
| 9-2019 | 12765 | 11744 |
| 8-2019 | 23484 | 17686 |
| 7-2019 | 12086 | 10272 |
| 6-2019 | 17729 | 10944 |
- 35536, 675, Oasis, Om Erickson 5501 11-18 4B, Missouri Ridge, t6/19; cum 94K 10/19; 21K month;
| Date | Oil Runs | MCF Sold |
|---|---|---|
| 10-2019 | 17908 | 14164 |
| 9-2019 | 21262 | 15188 |
| 8-2019 | 17637 | 11629 |
| 7-2019 | 15930 | 9506 |
| 6-2019 | 21045 | 6404 |
RBN Energy: disappearing arbs and harder times for some third-party oil shippers.
A little over a year ago, we discussed the rapidly expanding third-party shipper market for crude oil in West Texas. At the time, crude at Midland was trading at nearly a $15/bbl discount to Gulf Coast markets. Pipeline space out of the Permian was hard to come by and extremely valuable, and everybody and their brother — literally, in some cases — were forming a limited liability corporation and trying to secure space as a walk-up, “lottery” shipper. A lot of people made a lot of money, but now, just over a year later, much of that lottery opportunity has dried up. Nowadays, these same folks are looking for new opportunities, or going back to old strategies, only to find that being a third-party shipper today is more expensive and more burdensome. In today’s blog, we recap how lottery shippers made buckets of money in late 2018 and early 2019, only to see their target of opportunity dry up due to midstream investment.
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