The Number Of Active Rigs In North Dakota Keeps Climbing

Active rigs:

	3/12/2014	03/12/2013	03/12/2012	03/12/2011	03/12/2010
Active Rigs	193	187	201	173	104

RBN Energy: very nice article on pricing in the Permian. It was always a popular "myth" that the Texas infrastructure could handle all the oil coming out of the Permian. It turns out the Permian, which was supposed to be a dying field, is producing so much oil (and will be doubling that amount soon) the pipelines can't keep up, and rail is insufficient in Texas. Result: Permian oil is priced $8 below WTI at Cushing.

The Permian Basin in West Texas and New Mexico has produced prolific quantities of crude since the 1920’s. And after declining slowly since the 1980’s the basin has been rejuvenated in recent years by enhanced recovery techniques including the application of horizontal drilling and hydraulic fracturing to the multi-layered “pancake” hydrocarbon bearing source rocks. Production has increased by over 400 Mb/d since the start of 2012 and is expected to increase another 500 Mb/d by the end of the decade.

We have previously covered the growth in production and build out of pipeline capacity to get Permian crude to market – starting in 2012 with our “New Adventures of Good Ole Boy Permian” series. Last year (2013) in our “Rock the Basin” series we covered plans to open up new takeaway capacity (see Tight Pipeline Balance) and the market impact of new pipelines to Houston (see Opening the Permian Crude Floodgates and Can Houston Refineries Absorb New Permian Crude Supplies?).

Although the Magellan Longhorn and Energy Transfer West Texas Gulf expansions between them added 335 Mb/d of new pipeline capacity out of the Permian in 2013, there is still not enough room to comfortably ship growing production until the new Permian Express (200 Mb/d) and BridgeTex (278 Mb/d) pipelines come online in the middle of this year.

The Wall Street Journal

Many, many strange stories coming out of Malaysia over the missing plane.  Something tells me "everyone" from the NSA to the "Malaysian Air Force" and China know much more than we're being told. Of course, that's true in every such situation, but there's something more unusual going on here. EgyptAir Flight 990 (1999) comes to mind. Another: Silk Air Flight 185, a Boeing 737 en route from Jakarta, Indonesia to Singapore, 1997.

More enroll in ObamaCare but no one knows how many have paid. And no payment, no insurance card.

And the Crimean situation drags on. Continues to be a non-story for American investors. I don't think John Kerry is even interested any more. Europe tries to bolster the Ukraine, punish Russia. I assume France will be the cheerleader.

Tesla halts sales in New Jersey. The beginning of the end?

Disney Media Networks co-chairman hits the glass ceiling? Where's Mr Obama?

A top Walt Disney Co. executive unexpectedly said Tuesday she will be resigning, simultaneously adding clarity to the succession race for chief executive at the media giant and opening up one of the most powerful jobs in the television business.

Government Motor shares tumble on news of government investigation.