Six wells coming off the confidential list today -- Wednesday, January 22, 2020: 80 for the month; 80 for the quarter, 80 for the year:
- 36558, 301, Peregrine Petroleum Partners, LTD, Larson 15-10 1H, Covered Bridge, t9/19; cum 59K 11/19;
- 36463, drl, WPX, Mandaree Warrior 14-11HUL, Mandaree,
- 36290, drl, Rimrock, Two Shields Butte 3-24-12-2H, Mandaree,
- 35881, 637, Whiting, Meiers 12-17-2H, Sanish, t9/19; cum 71K 11/19;
- 35775, 1,996, CLR, Boulder 11-4H1, Banks, t9/19; cum 86K 11/19; 41K month;
- 35460, 938, CLR, Weisz 3-11-H1, Pleasant Valley, t11/19; cum 13K 11/19;
Fear about supply interruption isn’t the frantic force it used to be in the crude oil market.
A deadly confrontation that might have pushed the U.S. and Iran to the verge of war raised the spot Brent crude oil price to above $70/bbl early in the week of January 6, 2020.
Despite continuing regional concerns, the price quickly subsided. By January 13, 2020, Brent spot had fallen to $64.14/bbl, its lowest point since December 3, 2019. Before the Shale Era, a U.S.-Iranian face-off may well have launched Brent crude to well over $100/bbl as oil traders blew fuses over the heightened possibility of disruption to Persian Gulf oil production and transportation. There’s nothing like adequacy of supply, globally dispersed, to keep things calm — or at least calmer than they would have been if the U.S. and Iran had drawn so much sword a dozen years ago.
In this blog, we’ll discuss where U.S. crude exports have been heading, how close the oil gets to strategically touchy areas, and whether the market still has reason to worry about disruption to oil supply.