Update On DUCS -- Rystad Energy, CLR -- August 5, 2016

This Rystad Energy article is really pretty cool for a couple of reasons. First, the linked article brings us up to date on DUCs -- the linked article was posted yesterday. Second, it shows again how the North Dakota Industrial Commission took the lead when conditions changes. From the linked article:

By looking at the intentionally postponed (abnormal) part of DUC inventory, Rystad Energy observes that all major liquid basins are exposed to completion delays.

Bakken was the first play where completion delays became visible already in early 2015.

Since then, the abnormal inventory in this play has increased from 150 to 600 wells, thanks to the North Dakota Industrial Commission’s incentive to extend completion delay allowance from 12 to 24 months.

The Eagle Ford and the Permian Basin followed the trend in 2H15 and more than 600 abnormal DUCs have been observed in these plays recently.

At the linked article, note the graphic.

In fact, it appears there may have been a couple of DUCs identified for wells that came off the confidential list in 4Q14, the same quarter that Saudi announced the "surge."

From CLR's 2Q16 conference call:

Our gross operated DUC count in the Bakken has grown to approximately 165 wells and is expected to grow to approximately 190 gross operated DUCs at year end 2016. These DUCs represent a high-graded inventory with an average EUR of approximately 850,000 barrels of oil equivalent per well. We view these DUCs as oil in the bank, and they represent the most cost-effective barrels we have in the company's inventory.

On a cost-forward basis of $3 million to $3.5 million per well, these DUCs should deliver over 100% rate of return at $45 per barrel WTI and $2.50 per million cubic feet of gas.

We plan to continue to build our DUC inventory, and we'll begin completing DUCs as supply and demand rebounce and commodity prices improve.

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Nevada Solar Panels And Net Metering -- Update

From Ecowatch.com:

The Nevada Supreme Court unanimously ruled against a ballot referendum, which could have rolled back a controversial December 2015 regulator decision that lowered payments to rooftop solar customers. The ruling means that the referendum will not be voted on by the public in November.

Several story lines in that article:

• the journalist framed this as a Warren Buffett - Elon Musk win-lose story (go to linked story)
• this was reported in a "green" media outlet
• representative government vs pure democracy
• the "real" winners are the 99% of Nevadans who don't have solar panels and would have been forced to subsidize inefficient, very costly, nondispatchable solar energy
• this provides a precedent for other states to at least consider