The Number Of Active Rigs In North Dakota Down To 187; 1Q14 GDP Horrendous -- Blame It On The Weather -- LA Times

I mentioned I had trouble finding this story today, but here it is, in The Los Angeles Times, a headline story: economy shrinks in first quarter; 1Q14 GDP slowdown MUCH worse than thought; instead of a paltry 0.1% growth in GDP, it turns out the Obama 1Q14 economy contracted 1.0% -- is this the first time the GDP contracted in his presidency of "recovery"? 

The Los Angeles Times is reporting:

The economy performed worse than initially estimated amid severe winter weather in the first three months of the year, contracting for the first time since 2011, the Commerce Department said Thursday.

The nation's total economic output decreased at a 1% annual rate from January through March, down significantly from the government's first estimate of weak, but positive, 0.1% growth for the period.

Recent data indicate that the recovery has picked up this spring.

But the new report shows just how bad things were during the winter and how much ground the economy has to make up to hit the 3% overall growth for 2014 that economists had been hoping for.

This news is incredibly bullish for investors.

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here.

Now, back to the Bakken.

Active rigs:

	5/29/2014	05/29/2013	05/29/2012	05/29/2011	05/29/2010
Active Rigs	187	183	218	172	119

RBN Energy: talk of exporting oil (won't happen in my investing lifetime).

Crude oil exports from the United States are heavily restricted by Department of Commerce regulations introduced in the 1970’s that are administered by the Bureau of Industry and Security (BIS).

These regulations prevent the export of US crude oil except to Canada or in specific circumstances from Alaska and California.  In Episode 1 of this series we discussed the consequences of a partial end to the ban on crude exports that might occur as a result of a change to the BIS definition of lease condensate – a very light hydrocarbon that is nevertheless defined as crude that cannot be exported.

Production of lease condensate is booming in shale plays like the Eagle Ford in South Texas. Our analysis imagined that if the condensate export ban were lifted tomorrow, much of this material would be exported to Asia as a petrochemical feedstock.

This time around we widen the debate to wonder what would happen if there were a complete removal of the ban on crude exports – including lease condensate.

The crude export regulations were written at a time when a shortage of oil threatened US security and prompted legislators to prevent domestic producers sending supplies overseas. Between the mid-80’s and 2009, US crude oil production was in long term decline meaning that dwindling domestic supplies were eagerly snapped up by US refiners and the export ban was never more than an occasional issue (such as when Alaska North Slope – ANS- production exceeded West Coast refinery requirements in the 90’s). Since 2010, however, the US has undergone a dramatic crude renaissance, principally as a result of the shale oil revolution. Current production is over 8.4 MMb/d – its highest level since October 1986 – up 50 percent since the start of 2011. And while production is soaring, proved reserves are increasing even faster – laying the groundwork for continued output.

The Wall Street Journal

 Shinseki. Drip, drip, drip, ...

Apple to buy Beats to regain music mojo.

Republican governor raises state's minimum wage to $9.25 / hour by 2018; Michigan.

Ukraine says "nyet."

Just after his speech saying he will partner with allies, Obama unilaterally sends 1,000 US Marines toward Libya.

H-P layoffs continue. Won't be fast enough. 

The Los Angeles Times

Obama to bypass Congress to cut greenhouse gases. Boehner rolls over.

Looks like "they" need the jobs: Irwindale no longer says the hometown icon and factory is a nuisance.