Tuesday, January 14, 2016

Still waiting for the Director's Cut; link here. I'm being told it will come out Wednesday, June 15, 2016. When it comes out, one can find the monthly production report here. In anticipation of the release, this Reuters report: US shale output to dip for 7th consecutive month -- EIA -- note, this is for JULY production ... looking 45 - 60 days ahead, whereas we will see data that is 45 - 60 days old.

Bakken production from North Dakota is forecast to fall 32,000 bpd, while production from the Eagle Ford formation is expected to drop 63,000 bpd.

Production from the Permian Basin in West Texas is expected to drop 7,000 bpd.

U.S. shale oil output is expected to fall in July for the seventh consecutive month. Total output is expected to fall 118,000 barrels per day (bpd) to 4.723 million bpd in July, according to the U.S. Energy Information Administration's (EIA) drilling productivity report. NOTE AGAIN: this is SHALE OIL production projected for July, 2016.  

Active rigs:

	6/14/2016	06/14/2015	06/14/2014	06/14/2013	06/14/2012
Active Rigs	28	75	187	184	214

RBN Energy: The Domino Effect audio book -- what the shale revolution really means.

By the way, what did the market do yesterday? Despite being a down day on the market, there were 112 new highs vs 38 new lows. New highs included: Duke Energy, XOM, Kellogg, NextEra, Xcel Energy.

Here's an investment idea: the German bond. Now paying .... drum roll ... zero percent. The German 10-year sovereign bond yield turns negative for first time. I would comment on the Greek bond as an investment, but I've never understood bonds. I understand what bonds are and why they exist; what I don't understand is how to invest in them. Of course, I could probably say the same about equities.

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Time to close out these two polls. The first poll in which we asked, if you had a vote, would you vote for OPEC to set production limits?

• yes: 52%
• no: 44%
• other: 4%

The results of the second poll in which we asked, was the "Saudi Surge good/bad/indifferent for th Bakken?

• good: 15%
• bad: 43%
• indifferent 40%:
• other: 1%