BR, Whiting Each Report A "High-IP" Well -- July 13, 2014; Ten Of Twenty-One Wells Go To DRL Status

Well coming off the confidential list Monday, July 14, 2014:

• 26094, 214, North Plains Energy, Solberg 160-101-10-3-13B-1H, Sioux Trail, t3/14; cum 15K 5/14;
• 26126, drl, XTO, Rita 24X-34E, Tobacco Garden, no production,
• 26343, 34, Corinthian, Corinthian Gravseth 8-36 1H, Northeast Landa, producing, a nice Spearfish/Madison well, t3/14; cum 8K 5/14;
• 26589, 210, Oasis, Dale Van Berkom 5992 14-30 2T, Cottonwood, t4/14; cum 5K 5/14;
• 26900, 566, Oasis, Overal 5892 11-30T, Cottonwood, t1/14; cum 26K 5/14;
• 26985, drl, Hess, EN-Dobrovolny-155-93-2128H-5, Alger, no production data,
• 27075, 481, Slawson, E rennerfeldt 1-13H, Stockyard Creek, t4/14; cum 11K 5/14;
• 27098, drl, Hess, EN-Johnson-155-94-2017H-5, Manitou, no production data,

Well coming off the confidential list Sunday, July 13, 2014:

• 25493, drl, QEP, Johnson 4-9-3-10LL, Grail, no production data,
• 26087, 329, Baytex, Nelson 18-19-161-98H-1BP, Plumer, t3/14; cum 23K 5/14;
• 26466, 2,156, Whiting, Taylor 34-7-2H, Sioux, t1/14; cm 46K 5/14;
• 26518, 1,590, WPX, Independence 2-35HZ, Mandaree, t5/14; cum 8K 5/14;
• 27066, drl, Hess, EN-KMJ Uran-154-93-2734H-6, Robinson Lake, no production data,
• 27080, drl, Arsenal, Allison Ann 10-3H, Stanley, no production data,
• 27128, 98, American Eagle, Haugen 15-12-163-103, Flat Lake East, t4/14; cum 4K 5/14;
• 27299, 1,216, CLR, Jenner 1-21H1, Catwalk, a huge well, 11K in first month; t5/14; cum 11K 5/14;

Well coming off the confidential list Saturday, July 12, 2014:

• 26062, drl, MRO, Two Crow USA 21-15TFH, Moccasin Creek, no production data,
• 26125, drl, XTO, Loomer 24X-34E, Tobacco Garden, no production data,
• 26712, drl, Hess, BW-Arnegard State-151-100-3625H-2, Sandrocks, no production data,
• 26945, 1,978, XTO, Lucy 14X-32A, Siverston, t5/14; cum 5K 5/14;
• 27088, drl, Hess, GN-Wendell-158-96-1819H-1, South Meadow, no production data,
• 27269, 2,324, BR, CCU Red River 24-9MBH, Corral Creek, t6/14; cum --

***********************************

Catching Up

Because of minimal blogging during the cross-country trip, from Dallas to Los Angeles, via the Grand Canyon, with our granddaughters, I fell behind. I am gradually catching up.

RBN Energy had a great blog on changing patterns of Gulf Coast crude oil flows. This is another must-read article for those interested in the shale revolution in general, and the Bakken in particular. The article begins:

RBN has covered the flood of domestic crude oil showing up at Gulf Coast refineries in a number of blog posts this year. Market attention has turned to the Gulf Coast region – home to half the nation’s refining capacity as new crude delivery infrastructure in the shape of pipelines as well as rail and barge deliveries have overcome a crude logjam in the Midwest.

Along the way, the price relationship between three crude benchmarks has altered significantly at the Gulf Coast, namely the US domestic light sweet crude benchmark price for West Texas Intermediate (WTI) set at Cushing, OK, the international light crude benchmark, Brent and the Gulf Coast light sweet benchmark Light Louisiana Sweet (LLS).

With the Gulf Coast now awash in domestic light crude production, LLS and WTI prices are set by domestic supply pressures while lower imports of light crude at the Gulf Coast have reduced the influence of Brent since the fall of 2013.

Total imports of crude oil to the Gulf Coast region defined as “PADD3” by the Energy Information Administration (EIA) have declined overall during the past year although the weekly data has been quite volatile. We expect Gulf Coast refiners to increase their consumption of domestic crude versus imports but the equation is complicated by a quality mismatch between lighter crude production from shale and refineries designed to process heavier crude. As refiners adapt to new supply and quality patterns as well as new delivery infrastructure, changes in import patterns can be hard to discern or interpret. In this blog post we discuss changes to indicators based on crude imports traditionally used by traders to anticipate price movements.

For newbies trying to understand why gasoline is as high priced as it is in the states, at least part of the problem has to do with the mismatch between the light oil being produced in the United States right now, the killing of the Keystone XL pipeline which would have delivered a tsunami of heavy oil to the Gulf Coast refiners, and the refineries that were converted to process heavy oil prior to 2008. 

****************************

This Is Unsettling
Warning: 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.

The (London) Telegraph is reporting:

Credit spreads have fallen to to wafer-thin levels. Companies are borrowing heavily to buy back their own shares. The BIS said 40pc of syndicated loans are to sub-investment grade borrowers, a higher ratio than in 2007, with ever fewer protection covenants for creditors.

The disturbing twist in this cycle is that China, Brazil, Turkey and other emerging economies have succumbed to private credit booms of their own, partly as a spill-over from quantitative easing in the West.

Their debt ratios have risen 20 percentage points as well, to 175pc. Average borrowing rates for five-years is 1pc in real terms. This is extemely low, and could reverse suddenly. “We are watching this closely. If we were concerned by excessive leverage in 2007, we cannot be more relaxed today,” he said.

“It may be the case that the debt is better distributed because some highly-indebted countries have deleveraged, like the private sector in the US or Spain, and banks are better capitalized. But there is also now more sensitivity to interest rate movements." 

Wow. Isn't that the truth?

Meanwhile, CNBC reports the Fed is likely to end quantitative easing in October, 2014, which might be earlier than some expected. 

 

****************************

Wi-Fi

A shout-out to ATT U-Verse which we have where we stay when we are in California. It is simply incredible and has extremely competitive pricing compared to Time Warner in the Dallas-Ft Worth area. I love it (ATT U-Verse). Once signed on by a particular mobile device or a laptop, one does not have to sign on ever again. The system automatically connects, automatically works, and I never, never get bumped off the wi-fi connection due to "looking for network."

On the other hand, in Texas where we live and where we have Time Warner Cable, we have to sign on every time we use a mobile device or a laptop, and if the device goes to "sleep" due to inactivity, when we "wake it up," we need to re-connect, using the password again. Approximately every 15 minutes, regardless, I need to turn off wi-fi, turn it back on, and re-connect; the computers regularly and consistently fall off the net, "looking for networks."

I do not want to contact Time Warner Cable to "fix" the problem because it sort of works the way it is right now in Texas. My concern is that it will get completely messed up.  We had originally planned to use ATT in Dallas-Ft Worth area but were not sure U-Verse was available in our apartment complex. I will re-look at that when we get back to Texas.

But for now: I feel I am in wi-fi paradise. ATT U-Verse is incredible (which we also use for cable television).

And now: out to the beach.