Tuesday, April 19, 2016 -- Four Feet Of Snow In Colorado In April; Jailing Global Warming Skeptics Would Be A Good Idea -- Bill Nye, The Science Guy

Updates

April 25, 2016: Keystoned! Bernie Sanders got his wish. New York state denies permit for the Constitution natural gas pipeline. 
 

Original Post

Active rigs:

	4/19/2016	04/19/2015	04/19/2014	04/19/2013	04/19/2012
Active Rigs	28	93	188	185	213

Bill Nye: yes, it would be a good idea to lock up global warming skeptics, but first we have to explain the phenomenon of four feet of snow in Colorado ... in April. Moving on.

RBN Energy: a second wave of Tex-Mex refined products infrastructure. Just how big is the Bakken? Get this --

What we seem to be witnessing here is a repeat (albeit on a smaller scale) of the delivery infrastructure build-out we saw in the Bakken a few years ago  first crude-by-rail facilities, then pipelines – except this time for refined products in Texas, the southwest and Mexico.

Midstream companies like Rangeland, Monterra, Howard, NuStar, Magellan and Transmontaigne see Mexico’s need for imported refined products and LPG growing and its market opening—and they get to work, racing to add product-delivery infrastructure they believe will be in demand. As we’ve already seen with natural gas exports, the Tex-Mex border is the new frontier, chock-full of opportunities.

Boom! Surging gun sales create thousands of high-paying jobs. InfoWars is reporting that jobs related to gun industry increased 73% since Obama took office.

Boom! US jobs data flash early warning signs of an impending recession. I can't make this stuff up. This is being reported by Bloomberg who has told "us" for years, week in, week out, that the job market is strong, strong, strong. Neither the 800-lb gorilla (ObamaCare) or its cousin, the silverback ($15 minimum wage fervor) were mentioned in the article.

Boom! UnitedHealth, after announcing it is pulling out of ObamaCare because it was losing money on that scheme, ups 2016 outlook after surprisingly strong 1Q16. Maybe it will reconsider ObamaCare. USA Today reports that United Health is making money "hand over fist" after it withdraws from ObamaCare markets. Oh, say it ain't so.

UnitedHealth Group boosted revenues in the first quarter,  despite losses from participation in Affordable Care Act exchanges that are leading the company to exit those marketplaces in at least five states.

The nation's largest insurer said Tuesday that its first quarter revenue rose 25%, to $44.5 billion as compared to that three month period in 2015. Adjusted earnings jumped 17% to $1.81 per share, versus the first quarter of 2015.

The company saw particularly strong results with its health service business Optum, which consults with industry players on how to cut costs and better the quality of care. It saw $19.7 billion in revenue during the first quarter as compared to $12.8 billion during that quarter last year.

Bust! Kansas going broke after significant tax cuts. Governor couldn't get the legislature to hold the line on spending. Oh, well. It was a gallant try.

There! Put that in your pipe and smoke it! Saudi says it is ready to up production by 10%, by 1 million bbls to 11.5 million bbls if Iran continues to be obstinate and won't play ball with the rest of OPEC. And if necessary, the prince, chairman of the Supreme Council of Saudi Arabian Oil Co said it could increase production to 12.5 million in six to nine months. Saudi pumped 10.2 million bopd last month.

Keystone it! Bernie Sanders wants to keystone the proposed natural gas pipeline between Pennsylvana and New York and called on New York officials to reject the project. He is worried about the possibility of methane leaks from the proposed Constitution Pipeline.

Bamboozle! Bullet train oversight sought by California legislature -- new concern about cost overruns. The analyst's office had recommended that the rail authority provide more information about how a $43-billion gap in funding the construction would be closed. As the signs through out the London Tube say: "Mind the Gap!"

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Flashback!

Saudi Arabia and 12.5 Million Bbls Per Day

From a May 12, 2015, posting:

These numbers are probably not all that reliable, and they are certainly out of date but wiki reports:

Saudi Arabia produced 10.3 million barrels per day in 1980, 10.6 Mbbl/d in 2006, and "about" 9.2 million bopd in 2008. The country announced plans to increase this capacity to 12.5 million bopd by 2009. (I remember that figure, not 12.5 exactly, but the figure of around 12 million bopd was forecast back then.)

Also according to wiki, Saudi crude oil production has varied from as low as 8.25 million barrels per day (average for 2009) up to 9.83 million barrels per day (average for 2012). Overall, in the nine years since 2004 (2005-2013), Saudi crude oil and lease condensate production has averaged 9.20 million barrels per day, just slightly higher than 2004 levels.

Now, we get this, Bloomberg at Rigzone reporting:

Saudi Arabia boosted crude oil production for a second month to the highest level in at least three decades, helping to raise OPEC output as U.S. supply growth showed signs of slowing. The Middle Eastern country increased crude output by 13,700 barrels a day in April to 10.308 million, according to data the country communicated to the Organization of Petroleum Exporting Countries’ secretariat in Vienna.

OMG! "To the highest level in at least three decades." Except maybe in 2006 when maybe they produced even more. 

On the other hand, from outside sources:

OPEC’s data compiled from external sources showed Saudi Arabian output of 10.095 million barrels a day in April, lower than the figure directly communicated from the nation. The kingdom’s output was 10.069 million barrels a day in March, according to these figures, which OPEC describes as being compiled from “secondary sources.”

This all seems to be a "war" of words. There is not a whole lot of difference (at least in my mind) between 10.31 million bopd and 10.07 million bopd when one recalls that Saudi Arabia at one time announced plans to increase their production to over 12 million bopd.

See also the trillion-dollar mistake, March 29, 2016.

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