Tuesday, August 26, 2014; Statoil Cutting Back; Congresswoman Calling For Boycotting Burger King

Statoil cutting back. Reuters via Rigzone is reporting:

Norwegian energy firm Statoil will only slightly raise its U.S. shale oil and gas output in the near term due to spending curbs, well below a potential for a 50 percent surge, the firm said on Monday.

Statoil, which produces around a tenth of its oil and gas from its U.S. shale operations in the Bakken, Eagle Ford and Marcellus formations, has even cut back investments in the area, as shale projects are competing for capital within the company, said Torstein Hole, Statoil's chief for U.S. onshore activities.

Statoil abandoned its 2020 production target earlier this year and cut its capital spending budget, arguing that it needs to save cash and return more to shareholders after a decade of ramping up spending.

The firm increased shale production to around 210,000 barrels of oil equivalent per day by the middle of 2014 from close to nothing in 2010, but output levelled off in the second quarter.

This continues the story line I introduced a few days ago after arriving in the Bakken.

Active rigs:

	8/26/2014	08/26/2013	08/26/2012	08/26/2011	08/26/2010
Active Rigs	195	185	189	200	138

RBN Energy: more problems for Bakken producers -- simply not enough storage capacity for the tsunami of oil reaching the coasts.

Looking out over the next year and a half to 2016, Houston crude storage capacity looks to be lower than necessary to meet operational needs. With continuing increases in pipeline crude streams headed into the area in the next six months, we could see supply disruptions with consequences for price volatility. Probable victims of these disruptions would be producers looking to find a home at Houston refineries for their production. The solution is to build more storage but the market is not yet sending alarm signals to that effect.  Today we conclude our series on Houston storage capacity.

Saudi Aramco will invest $40 billion annually for the next decade. Reuters via Rigzone is reporting:

Saudi Aramco, the world's biggest oil producer, plans to invest $40 billion a year over the next decade to keep oil production capacity steady and double gas production.

State-owned Aramco sees more capital going into offshore projects and expects rising costs across the oil sector to underpin oil prices.

Oil prices fell to a 14-month low of $101.07 last week as global demand growth weakens, even as production ramp ups in several places create a glut of oil.

"To meet forecast demand growth and offset (global output)decline, our industry will need to add close to 40 million barrels per day of new capacity in the next two decades."

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

Boycott Burger King

I heard on the news this morning, driving into downtown Williston, that a Congresswoman was calling for a boycott of Burger King.

By the way, the drive into downtown Williston was uneventful. At 7:00 a.m. there was no traffic on this side of town, the east site, the University side. At the first stop sign/intersection, I was the only vehicle. At the first (and only) traffic light intersection that I had to cross, again, no other vehicles. The sun is shining, no rain, but very, very cool. There was some talk in the coffee shop of an "early winter." Well, the words "early winter" were not used; rather, it was more like "winter is already here." They must be new to Williston. This, too, will pass, and the autumn will be absolutely gorgeous and then "Indian summer" is generally incredible. Is "Indian summer" an "okay" phrase?

I also heard part of eulogy for Michael Brown who was said to have been doing the Lord's work when he died. I also read that the White House sent more mourners to Brown's funeral than it sent to Thatcher's funeral. But that's very, very misleading and very, very unfair. It's not the numbers that count but the value of each piece -- think chess -- six pawns vs one knight, and two bishops.

The Wall Street Journal

News and Comment; Mostly Comment; Not Fair; Not Balanced

Earlier the administration was going to arm the rebels in Syria; now they are laying the groundworkr for airstrikes on the same rebels. Was Putin correct?

The Islamic State is going to seriously alter the demographics and once-mixed communities by dividing territory along ethnic and religious lines. Ferguson?

Buyers not clamoring for new homes. 

14-year Army veteran commits suicide on militarized Army base in Virginia yesterday.

Oh, this is good. While the Obama administration looks to de-militarize police forces around the country, "more Texas schools allow armed employees." Somehow visions of kitchen workers pakcing heat is not comforting. Brings more meaning to "eat your vegetables, or make my day."

Libya is back in the news.

IEA: Europe needs Russian natural gas. Okay. I thought we already knew that.

Congo reports first Ebola cases since 2008. I remember when such news caused alarm in the US. Not so much these days.

This makes no sense: slow going for natural-gas powered trucks. Amid the strongest market for commercial trucks in eight years (yes, thank you, Mr Bakken), US sales of natural-gas powered haulers are just inching ahead, slowed by premium prices, limited infrastructure, and more efficient diesels.

Court overturns Hawaii ban on GMO crops.

This will show them who's the boss: federal investigators expel both UPS company reps and pilot-union reps from a UPS cargo plane investigation.

Not getting any better for Statoil: sanctions on Russia will slow down approvals for some of Statoil's Rosneft joint ventures.

Fairchild cutting 15% of the workforce.

S&P closes at another record; futures are up again today. Shorts are getting crushed. Weren't there some stories recently on Soros betting big on a 10%, or even a 20%, pullback. May yet happen, but not this week.

Apple iPhone might save Best Buy.

 The Los Angeles Times

Headline story:  LAUSD suspends iPad program after bidding is called into question. Actually the whole idea of iPads in LA schools was crazy.

Liberian doctor who got experimental drug dies of Ebola.

Emmys 2014: "Breaking Bad," "Modern Family" dominate. "Fargo" got more than one Emmy, I believe. The most "worthy' segment, as it always is, year in, year out: "In Memoriam."

The 2014 Emmys honored the late Robin Williams Monday night, Aug. 25, with a touching tribute at the end of the in memoriam segment of the broadcast. Billy Crystal, Williams' longtime friend, spoke about the late actor. "The brilliance was astounding," Crystal said of Williams, who he performed with numerous times.

 ***************************

Al Sharpton's Networks On The Ropes

The Wrap is reporting:

An individual with knowledge of the network's plans tell TheWrap a large portion are expected at the two cable channels

Some 550 buyouts are to be offered at Time Warner's Turner network this week, including a large number of those at CNN and HLN, which will lead to layoffs if they are not taken voluntarily, according to an individual with knowledge of the network's plans.

The buyouts will come across the Turner division, with a couple of hundred expected at CNN and HLN, the individual said.

One of the comments to this story, that I posted last night, posting again:

Here’s the problem with MSNBC and CNN: predictability. You already know what they’re going to say on any issue. So why watch?

I once knew a piano player in a fancy restaurant I used to go to who could play only one song really well: Moon River. You’d get it fast and slow and reggae and cha-cha and gospel and jazz and blues, but it was still Moon-effing-River. Now if you liked Moon River, you were golden. If you didn’t, go some place else. That’s MSNBC – a “one-note Johnny.”

On the other hand, Fox is unpredictable. Of course they might have a conservative slant, but they bring in far more libs to speak their piece than MSNBC does conservatives. And I like Megyn Kelly a lot. The woman has a mouth on her. You never know what she’ll say next. Ailes allows her to go off-script. You never see that at MSNBC or CNN. Stick to the copy!