Friday The Twenty-Seventh -- August, 2021

Natural gas: Henry Hub futures spike following US natural gas storage build below market expectations; winter strips climb(s) to $4.25 / MMBtu. Link here.

Gasoline: keep your tanks full. All things being equal, the jump in WTI overnight has to do with the storms bearing down along the coasts of Texas and Louisiana.

Nordstream 2: German court says Nordstream is not allowed special dispensation. Link here.  

The market: on the other hand, the US equity markets are up strong today for another reason. After yesterday's brilliant press conference, investors know that "things are going very well, everything according to plan." Resident Biden.

The decision to abandon Bagram AFB for Kabul's civilian airport might be one of the worst strategic blunders of the last twenty years, and was done exclusively for political reasons and not logistical imperatives. Link here. 

We know Resident Biden did not make that decision.

******************************
Back to the Bakken

ND airports: highest level of passenger traffic since the pandemic began; Williston Basin Airport is reporting a similar upward trend. Link here. 

*Active rigs: "true" number reported COB --

$6.54	8/27/2021	08/27/2020	08/27/2019	08/27/2018	08/27/2017
Active Rigs	23*	11	63	61	55

One well coming off the confidential list:

Friday, August 27, 2021: 16 for the month, 27 for the quarter, 207 for the year:

• 37920, conf, Slawson, Whirlcat Federal 5-31-19TFH, Big Bend, no production data,

RBN Energy: northern California's new emissions rule and the potential impact to regional refiners. See, also, this note of August 18, 2021.

California has a long history of leading the U.S. in environmental regulations and of taking federal environmental rules to the next level. Back in the 1960s, for example, the state became the first to regulate emissions from motor vehicles. In more recent decades, it has led the way in reducing greenhouse gas emissions. Many of these progressive regulations migrate to other states over time, which adds significance to a Northern California environmental agency’s recent decision to put stricter limits on emissions from refinery fluidized catalytic cracking units, or FCCUs.

In today’s blog, we discuss the new regulation and its potential implications.

On July 21, the Bay Area Air Quality Management District approved an amendment to Regulation 6, Particulate Matter, Rule 5 (Rule 6-5) that is expected to impact operating FCCUs in Northern California. The amendment specifically targets emissions associated with particulate matter (PM) and requires refiners to reduce their PM emissions within the next five years. While this regulation applies to all refineries in Northern California with FCCUs (four of the five facilities there), the BAAQMD has specifically identified two refineries in the Bay Area that it expects the regulation to impact directly. Before we dive into the new rule, let’s cover some of the basics for readers who may be unfamiliar with FCCUs and how these units produce and control PM emissions.