Monday, August 17, 2015

EOG, Halcon, and Whiting all report huge wells in the Bakken. 

Active rigs;

	8/17/2015	08/17/2014	08/17/2013	08/17/2012	08/17/2011
Active Rigs	74	194	183	199	191

RBN Energy: LNG is a battlefield -- the prospects for US success in overseas markets.

This much seems very likely: In what’s becoming an increasingly liquid, competitive and lower-margin market, the most successful among natural gas producers and LNG exporters will be those who offer the full package: ample gas supplies, low-cost gas production, supportive pipeline infrastructure, competitive liquefaction costs, easy access to multiple markets, and destination flexibility. The U.S. gas/LNG sector appears to offer these benefits, as well as the bonus of LNG prices tied to the price of U.S. natural gas. (As we understand the situation, Canada’s LNG developers are not offering gas-indexing—at least so far.) The prospects for U.S. gas producers/LNG exporters therefore seem to stack up well against both Qatar (the biggest existing player in LNG supply) and Australia (which, with the U.S., is the other big up-and-comer). As always in a highly competitive market, though, success will depend to a significant degree on who’s more savvy, more responsive and more innovative. It will be an interesting few years.