The U.S. Supreme Court on Monday placed limits on the Securities and Exchange Commission's practice of forcing defendants to surrender profits obtained through fraud as part of its enforcement of investor-protection laws in federal courts, but stopped short of disallowing such action. [I assume it's either a violation of "cruel or unusual punishment" and/or illegal seizure of property and/or interference with the pursuit of happiness.Can you spell SUV?: EIA says motor gasoline accounted for almost half of US petroleum consumption in 2019. Twitter link here. EIA link here.
The big turnaround: from negative prices to a bull market. Bloomberg via Rigzone. With OPEC basket below $40, I suspect some folks have trouble seeing this as a bull market.
Vitol estimates that oil demand is rising by about 1.4 million barrels a day every week in June -- that’s roughly equal to adding the whole consumption of the U.K. to the market, weekly.Steel: US Supreme Court upholds Trump's tariffs on steel imports. Link here.
Disclaimer: this is not an investment site. Do not make any investment, financial, career, travel, job, or relationship decisions based on what you read here or think you may have read here.
OPEC basket, link here: $39.45.
Futures: early last evening Dow futures were down about 300 points. All night long the headlines: Dow futures down due to spike in number of cases of corona virus. Sometime around midnight, the Dow futures flipped, up almost 300 points. Now, Dow futures are up about 125 points.
- AAPL: down $2.01 at the close on Friday, AAPL is up about $2.40 in pre-market trading
Pipeline delay: recently in the news. Now this:
Dominion Energy Inc. has asked FERC for two more years to complete the beleaguered $8-billion Atlantic Coast natural gas pipeline, which is now expected to enter service in early 2022.Running out of storage? The number of tankers waiting off China's coast to off load oil is increasing. Apparently they've simply run out of onshore storage. Link here.
The congestion illustrates the explosion in purchases by Chinese refiners as the country re-opened after shutting down to contain the coronavirus. The rush for cheap crude is overwhelming port infrastructure and storage amid an influx of cargoes from the Middle East, Latin America, Russia and West Africa.China's crude oil inventories soar to new high. S&P Global Platt. Since some of the numbers don't make sense to me, recommend that you go to the link. If the numbers are correct and if I'm reading them correctly, China's seaborne crude oil imports increased by almost 40% month-over-month:
- total crude oil in storage: 14.3 million b/d in June
- domestic production: 3.9 million b/d over the first-half of 2020
- imported 11.34 million b/d last month (May, 2020) -- an historical high
- seaborne crude arrivals may hit 14.16 million b/d in June
- a new record high
- follows 10.21 million bbls arriving by sea in May
- some of the June deliveries won't actually unload until July due to port congestion;
Best news: I didn't watch any television over the weekend, except a bit of golf, so I'm sure I missed it, but surfing the net, I did not come across any book reviews of John Bolton's book. I don't even know the title of the book. And don't write to tell me. Ignorance if bliss. I did see a headline that NPR faked a story / photograph. So, what's new?
No television: as noted, I did not watch any television except a bit of golf; saw the re-airing of some PGA tournament. Apparently the tournament survived despite one player testing positive for corona virus. Hope he's doing well.
Surfing the net: lots of shootings across the country. Mostly in cities with strong anti-gun laws, it appears. One common theme: no witnesses.
Corona virus in the Mideast: both Dubai and Saudi Arabia have now relaxed restrictions due to the virus.
North Dakota online sales tax: totaled about $43 million over the first two years that such taxes were authorized. $43 million over two years. To put that in perspective, Legacy Fund deposits will total that much each month if price of oil gets back to "normal."
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Back to the Bakken
Active rigs:
| $39.50 | 6/22/2020 | 06/22/2019 | 06/22/2018 | 06/22/2017 | 06/22/2016 |
|---|---|---|---|---|---|
| Active Rigs | 12 | 64 | 65 | 59 | 29 |
Wells coming off confidential list over the weekend, today:
Monday, June 22, 2020: 54 for the month; 199 for the quarter, 426 for the year:
- 37055, drl/drl, CLR, Angus Federal 12-9H, Elm Tree,
- 37056, drl/drl, CLR, Angus Federal 11-9H2, Elm Tree,
- 36875, drl/TASC, Equinor, Jack Cvancara 19-18 4H, Alger,
- 35958, SI/A, Whiting, Arndt 14-5-3XH, Sanish, t--; cum 75K 4/20;
- 35676, SI/A, CLR, Boston 8-25H, Brooklyn, t--; cum 59K 4/20;
- 37057, drl/drl, CLR, Angus Federal 10-9N, Elm Tree,
- 36876, drl/TASC, Equinor, Domaskin 30-31 9H, Alger, no production data,
- 35668, SI/NC, Zavanna, Stranger 28-21 4H, Poe, t--; cum 139K 4/20;
- 37058, drl/drl, CLR, Angus Federal 9-9H, Elm Tree,
- 35677, SI/A, CLR, Boston 9-25H1, Brooklyn, 42K in 52 days;
- 35674, SI/A, CLR, Boise 0-24H1, Brooklyn, 38K in 54 days;
On Thursday, June 18, the Federal Energy Regulatory Commission (FERC) issued a Notice of Inquiry (NOI) to reset the index that’s used to make annual changes to the rate ceilings for interstate pipelines that transport crude oil, refined products, and other hydrocarbon liquids. Every year, the highest rate an indexed oil pipeline can charge goes up or down — almost always up — using the FERC index. The commission’s new proposal, which would become effective in July 2021, follows an already-approved index adjustment that will take effect a week from Wednesday, on July 1. Taken together, the two changes would reduce the maximum annual increase in the rate ceiling from more than 4% now to less than 1%, which could have a major impact on liquids pipeline owners. Today, we discuss the NOI, the meaning of the pipeline index, where it came from, and where it might be headed.
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