- global oil surplus at a record 18 million bbls per day in April
- global oil surplus exceeds demand by a whopping 22%
- horizontal drilling at August, 2006, low
- for April, month-over-month, OPEC increased production by 1.5 million bopd, all of it coming from the Saudis (1.6 million bopd); the Emirates (332,000 bopd); and, Kuwait (259,000 bbls) -- every other major OPEC producer adhered to output allocations (again, Saudi shenanigans)
- update on oil tankers off the coast of California; more en route (other source, previously posted); see comment at this post --
- there was an 18.2 million barrel per day global surplus in April, so if this armada is a speculative purchase over and above normal demand, it would account for almost 13 days of it
- DAPL not mentioned
No deal: Total SA backs out of deal to buy OXY assets in Ghana. As recently as May 5, 2020, the deal was still on.
Five companies on "brink of financial disaster": NOG, Transocean, Chesapeake Energy, Denbury Resources, and OXY. Link here, May 17, 2020.
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China: demand almost back to pre-virus crisis levels. Link to Bloomberg at [Canada] Financial Post.
OPEC basket, link here: $26.54.
Back to the BakkenActive rigs:
Wells coming off confidential list this weekend, Monday --
Monday, May 18, 2020: 55 for the month; 105 for the quarter, 332 for the year:
- 35622, SI/A, CLR, Palmer Federal 13-25HSL1, Haystack Butte, t--; cum 15K over 23 days;
- 34729, drl, Hess, BB-Federal B-151-95-2122H-2, Blue Buttes, t--; cum --;
- 35933, drl, conf, XTO, Hovet Federal 41X-29D, Haystack Butte; t--; cum --;
- 35621, SI/A, CLR, Palmer Federal 12-25HSL, Haystack Butte, t--; cum 30K over 24 days;
- 34730, drl, Hess, BB-Federal B-151-95-2122H-2, Blue Buttes, no production data,
- 35747, SI/NC, Zavanna, Usher 28-21 3H, Poe, t--; cum 94K over 4 months;a 45K month;
- 35669, SI/NC, Zavanna, Stranger 28-21 5TFH, Poe, t--; cum 98K over four months;
Back in late March and early April, U.S. refineries responded to the sudden falloff in demand for jet fuel and motor gasoline by quickly ramping down their operations. Similarly, E&Ps in recent weeks have reacted to sharply lower demand for crude oil by slowing — or even suspending — their drilling activity and shutting in wells. Midstream companies’ actions have generally been more muted, though. While many midstreamers have ratcheted back their planned 2020 capital spending plans, the bulk of their major crude oil, natural gas and NGL projects already under construction are staying on-plan. Most of the rest are only being delayed by a few months, and a handful are either being reworked or deferred indefinitely. Today, we consider the midstream sector’s seemingly modest response to the crashes in crude oil prices and demand.